BUFFALO FISCAL STABILITY AUTHORITY TAB 1 BUFFALO FISCAL STABILITY AUTHORITY BY-LAWS ARTICLE I THE AUTHORITY SECTION 1. The Authority – The Buffalo Fiscal Stability Authority (“the Authority”) is a corporate governmental agency and instrumentality of the State of New York constituting a public benefit corporation. SECTION 2. Acts of the Authority – All acts, agreements, and documents of the Authority shall be performed or executed in the name of the Authority by a Director or other duly authorized officer of the Authority. SECTION 3. Certification of Instruments – Each Director or other duly authorized officer of the Authority shall have the authority, when necessary or appropriate, to certify the records, proceedings, rules, regulations, and other instruments of the Authority and to affix and attest to the official seal of the Authority on contracts and other instruments of the Authority. SECTION 4. Administration – The powers, organization, and administration of the Authority shall be in accordance with the provisions of the Buffalo Fiscal Stability Authority Act, or other applicable laws and these By-Laws. SECTION 5. Fiscal year – The fiscal year of the Authority shall begin July 1 and end the following June 30. SECTION 6. Seal of the Authority – The official seal of the Authority shall be in such form as may be determined, from time to time, by the resolution of the Directors of the Authority. The seal on any corporate obligation for the payment of money may be a facsimile. SECTION 7. Offices – The principal office and place of business of the Authority shall be located in the City of Buffalo, State of New York. The Authority may also have other offices at such other places within the State of New York as may be deemed necessary by the Directors of the Authority. 1 ARTICLE II DIRECTORS & OFFICERS SECTION 1. Directors – The business and affairs of the Authority shall be managed by the Board of Directors of the Authority who shall be selected and shall hold office as provided in the Buffalo Fiscal Stability Authority Act. SECTION 2. Compensation of Directors – The Directors of the Authority shall serve without salary or fringe benefits, but each Director shall be reimbursed for actual necessary expenses incurred in the performance of such Director’s official duties as a Director of the Authority. SECTION 3. Chairperson and Vice-Chairperson – The Governor shall designate a Chairperson and Vice-Chairperson from among the Directors. The Chairperson shall preside over all meetings of the Directors and shall have such other duties as the Directors of the Authority may direct. The Vice-Chairperson shall preside over all meetings of the Directors in the absence of the Chairperson and shall have such other duties as the Directors of the Authority may prescribe; except that if in such event that the office of the Vice-Chairperson is vacant or the Vice-Chairperson is absent or disabled, the Chairperson shall designate a Director to preside at such meeting. SECTION 4 Appointment and Delegation – The Directors of the Authority shall appoint a Treasurer, who shall not be a member of the Authority's Board of Directors, and may appoint such officers, employees, and other agents of the Authority as are deemed necessary to effectuate the purposes of the Authority and may delegate to such officers, employees and agents such powers and duties as the Directors may deem proper. Officers shall serve at the pleasure of the Board of Directors. No Board member, including the Chairperson, shall serve as the Authority’s chief executive officer, executive director, chief financial officer, comptroller, or hold any other equivalent position while also serving as a member of the Board. SECTION 5. Removal and Vacancy – Any officer may be removed or have his or her authority suspended by the Authority at any time, with or without cause. If an office becomes vacant for any reason, the Authority shall have the power to fill such vacancy. SECTION 6. Officers Holding Two or More Offices – Any two or more offices may be held by the same person, but no officer shall execute or verify any instrument in more than one capacity if such instrument is required by law or otherwise to be executed or verified by two or more officers. SECTION 7. Delegation – In the event of a vacancy in any office or the absence or disability of any officer or for any other reason that the Authority may deem sufficient, the Authority, except as otherwise provided by law, may temporarily delegate the powers or duties of any officer to any other officer or to any Director, except as prohibited by Article II, Section 4. 2 ARTICLE III MEETINGS OF THE AUTHORITY SECTION 1. Meetings – Regular meetings of the Authority shall be held at such times as the Board of Directors may from time to time determine. Special meetings of the Board of Directors shall be held at any time, upon call from the Chairperson, and shall be called by the Chairperson upon the request of at least five Directors of the Authority. SECTION 2. Place of Meetings –Regular and special meetings of the Board of Directors shall be held at the principal office of the Authority or at such other place within the State of New York as the Board of Directors may from time to time determine. SECTION 3. Notices – Notice of the place, date, and time of every regular and special meeting of the Authority or any committee of the Board shall be given by mailing the same, at least three days before the day on which the meeting is to be held, to the address of each Director or committee member designated by him or her for such purpose (or, if none is designated, to his or her last known address) or by delivering it personally, electronically or telephonically at least 12 hours in advance of the time for which the meeting is called. Neither the business to be transacted at, nor the purpose of, any meeting of the Authority or committee need be specified in any notice or written waiver of notice unless so required by these By-Laws. Special meetings may be called only for a specific purpose or purposes, and such action(s) at such special meeting shall be limited to the purpose(s) set forth in the notice. SECTION 4. Waiver of Notice Notice of a meeting of the Board or any committee need not be given to any Director who submits, or whose duly appointed representative submits, a signed written waiver thereof, whether before, during or after the meeting, nor to any Director who attends the meeting without protesting, prior thereto or at its commencement, the lack of notice to him. SECTION 5. Cancellation and Rescheduling of Meetings The Chairperson, or in the Chairperson’s absence, the Vice Chairperson, may cancel or postpone a scheduled regular or special meeting by delivering notice personally, electronically, telephonically, or by mail to all other members of the Board of Directors, which such notice must contain the reason for cancellation or postponement of such meeting. A regular or special meeting may also be cancelled or postponed by a majority of the Directors, but in no case fewer than five Directors. For any meeting scheduled fourteen days or more prior to the meeting date, such notice shall be furnished at least five days prior to the meeting date. For any meeting scheduled less than fourteen days prior to the meeting date, such notice shall be furnished as soon as is practicable. The Chairperson or Vice Chairperson shall consult each Director as to scheduling, prior to rescheduling any cancelled or postponed meeting. 3 SECTION 6. Quorum and Exercise of Powers – Five Directors shall constitute a quorum for the transaction of any business or the exercise of any power of the Authority. The Authority shall have power to act pursuant to a favorable vote of five Directors. If at any meeting there is less than a quorum, a majority of those Directors present may, from time to time, adjourn the meeting without further notice to any absent Director. SECTION 7. Personal Attendance by Video Conference; Participation Remotely by Electronic Means – If the Chairperson determines that there is a need for the Directors to act under circumstances where it is not possible or practicable to bring a quorum of the Directors together at the same location, the Chairperson or the Executive Director, upon direction of the Chairperson, may give notice that any one or more members of the Board of Directors or any committee thereof may participate in a meeting of such Board or committee by means of video conference equipment allowing all persons participating in the meeting to hear and observe each other at the same time and to see all material presented, and presentations made, at the meeting. Participation by such means shall constitute presence in person at the meeting. A Director also may participate in a Board or committee meeting by telephone or other remote means of electronic communication, but may not vote or be counted as present for any such meeting. SECTION 8. Procedure – The order of business and all other matters of procedure at each meeting of the Authority may be determined by the presiding officer. SECTION 9. Minutes – The Authority shall keep minutes of their acts and proceedings to the extent required by law, or as otherwise required by a majority of the Authority’s Directors. ARTICLE IV COMMITTEES SECTION 1. Audit, Budget and Finance Committee – The Board shall establish an Audit, Budget and Finance Committee to consist of three or more members, each of whom qualifies under the New York State Public Authorities Law ("PAL") as an independent member, for the purpose of recommending to the Board the hiring of a certified independent accounting firm, establishing the compensation to be paid to the accounting firm and providing direct oversight of the performance of the independent audit by the accounting firm hired for such purposes; also to develop and oversee the Authority’s budget, to receive and distribute funds that come into the custody of the Authority, to maintain appropriate internal controls and separation of functions, to receive the annual report of the independent auditor, to recommend to the Board of Directors actions based on recommendations of the independent auditor, and to undertake such other activities as the Board Chairperson may direct from time to time. 4 SECTION 2. Governance Committee – The Board shall establish a Governance Committee to consist of three or more members, each of whom qualifies under PAL as an independent member, for the purpose of keeping the Board informed of current best governance practices, to review corporate governance trends, to review and update the Authority's corporate governance principles, and to undertake such other activities as the Board Chairperson may direct from time to time. SECTION 3. Other Committees – The Board of Directors may create one or more other committees of the Board. The Board shall determine the membership, powers and duties of such committees, provided that only members of the Board of Directors may serve as members of committees of the Board established under this Article. If, at a regular or special meeting of the Board of Directors, one or more Directors shall abstain from voting on a particular item of business and as a result there shall only be four or fewer Directors present and able to vote, the Chairperson or presiding Director may at his or her discretion appoint those four or fewer Directors to serve as a temporary ad hoc committee to consider that item of business and recommend action in respect to that item at the next special or regular meeting of the Board. SECTION 4. Meetings – Regular meetings of any committee of the Board shall be held at such times as each such committee or the Board of Directors may from time to time determine. Special meetings of any committee, which may be called only for a specific purpose or purposes, shall be held at any time upon call from the Secretary of the Authority, upon the request of at least two members of the committee. SECTION 5. Place of Meetings – Regular and special meetings of committees shall be held at the principal office of the Authority or at such other place within the State of New York as each committee may from time to time determine. SECTION 6. Cancellation and Rescheduling of Committee Meetings – The Chairperson of a committee, or if the chair is vacant, or the Chairperson is absent or disabled, the member of the committee with the longest period of membership on the Authority (“Senior Member”), may cancel or postpone a scheduled meeting by delivering notice personally, electronically, telephonically, or by mail to all other members of the committee, which such notice must contain the reason for cancellation of such meeting. A regular or special meeting may also be cancelled or postponed by a majority of the committee members, but in no case fewer than two committee members. For any meeting scheduled fourteen days or more prior to the meeting date, such notice shall be furnished at least five days prior to the meeting date. For any meeting scheduled less than fourteen days prior to the meeting date, such notice shall be furnished as soon as is practicable. The Chairperson or Senior Member shall consult each committee member as to scheduling, prior to rescheduling any cancelled or postponed meeting. SECTION 7. Quorum and Exercise of Powers – A majority of the total number of members of a committee shall constitute a quorum for the transaction of any business or the exercise of any power of a committee. All action by a committee shall be taken by vote of a majority of the total number of its members. If at any meeting there is less than 5 a quorum, a majority of those members present may, from time to time, adjourn the meeting without further notice to any absent member. 6 SECTION 8. Conduct of Meetings – The Chairperson of a committee, or if the chair is vacant, or the Chairperson is absent or disabled, the Senior Member, shall preside at each meeting of the Committee. The Secretary of the Authority, except as otherwise provided by the Authority, shall act as Secretary at all meetings of the committee, and in the absence of the Secretary, a temporary Secretary shall be appointed by the presiding officer. The order of business and all other matters of procedure at each committee meeting may be determined by the presiding officer of the committee. SECTION 9. Minutes – All committees shall keep minutes of their acts and proceedings to the extent required by law, or as otherwise required by a majority of the Authority’s Directors. ARTICLE V INDEMNIFICATION OF DIRECTORS, OFFICERS AND EMPLOYEES SECTION 1. Right of Indemnification – Each Director, officer, and employee of the Authority, all of whom shall be deemed officers and employees of the State for the purposes of section seventeen of the public officers law, shall be held harmless and indemnified as provided for in section 3870 of the Buffalo Fiscal Stability Act enacted as chapter 122 of the laws of 2003. ARTICLE VI AMENDMENTS SECTION 1. Amendments – These By-Laws may be adopted, amended or repealed by resolution duly adopted at any meeting of the Authority, notice of which shall have referred to the proposed action, by a vote of a majority of the total number of Directors. ARTICLE VII SUSPENSION OF BY-LAWS SECTION 1. Suspension of By-Laws – By affirmative vote of a majority of the total number of Directors, the provision of any or all of these By-Laws, except as may be otherwise provided by law, may be temporarily suspended. 7 BUFFALO FISCAL STABILITY AUTHORITY RESOLUTION NO. 20-XX APPROVING THE BYLAWS OF THE BUFFALO FISCAL STABILITY AUTHORITY WHEREAS, Chapter 122 of the Laws of 2003 of New York State, as amended, created the Buffalo Fiscal Stability Authority (“BFSA”) to provide financial oversight and budgetary control over the City of Buffalo and other Covered Organizations; and WHEREAS, pursuant to §3854(3) of the BFSA Act, it was necessary to make and alter bylaws for the BFSA’s organization and management; and WHEREAS, the BFSA approved the initial adoption of its Bylaws by Resolution No. 03-01 at its meeting on July 15, 2003; and WHEREAS, the BFSA most recently adopted the current Bylaws by Resolution No. 19-10 at its meeting on July 29, 2019; and WHEREAS, it is desirable to amend the Bylaws to provide for the appointment of ad hoc committees as necessary to be able to consider items of business and recommend action in respect to such items at the next special or regular meeting of the Board in the instances that four or fewer Directors are present and able to vote; and WHEREAS, the BFSA Board of Directors has reviewed the proposed changes to Article IV, Section 3. NOW THEREFORE BE IT RESOLVED the revised Bylaws are hereby approved. This resolution shall take effect immediately. Approved July 20, 2020 Frederick G. Floss, Secretary Pro Tem BUFFALO FISCAL STABILITY AUTHORITY TAB 2 Buffalo Fiscal Stability Authority Review and Analysis of the City of Buffalo’s 2020-21 Adopted Budget and 2021-2024 Financial Plan Overview The 2020-21 Adopted Budget for the City of Buffalo (the “City”) provides General Fund estimated revenues and budgeted appropriations of $519.6 million, representing an increase of $10.9 million, or 2.1 percent, over last year’s adopted budget of $508.7 million. The City’s fiscal year is from July 1 to June 30. The City Common Council approved the 2020-21 budget on June 4, 2020 at which point it was also adopted. The 2021-2024 Financial Plan (“Financial Plan”) contains budget actions related to the current ongoing COVID-19 pandemic. The pandemic had a negative impact on City revenue in 2019-20 which began at the end of the third quarter. In response to the revenue shortfall in 2019-20, the City issued an 18-month deficit note in June 2020 in the amount of $25.0 million, due to mature in December 2022. The negative impact on financial operations is anticipated to continue throughout the 2020-21 fiscal year and into future years, the extent to which is unknown and requires estimation for appropriate fiscal planning. This report provides a high-level overview of the components of the City’s 2020-21 Adopted Budget and Financial Plan and provides additional detail on key changes and differences from the prior year. 2020-21 Adopted Budget Summary The 2020-21 Adopted Budget (“Adopted Budget”) totals $519.6 million. The following schedule provides historical context by providing revenues and expenditures for fiscal year-end June 30, 2019, both the adopted budget and year-end projection for fiscal year 2019-20, and the adopted budget for fiscal year 2020-21. Fiscal Year Ended June 30, 2019 Actual 2019-20 Year-End Estimate as of March 31, 2020 2019-20 Adopted Budget 2020-21 Adopted Budget Increase/(Decrease) Budget to Budget Increase/(Decrease) over Year-End Estimate ($ in millions) Revenue Total Revenue $ Transfers In 477.8 $ 13.9 495.4 $ 465.4 $ 13.3 13.3 505.3 $ 14.3 9.9 $ 1.0 39.9 1.0 Total Revenue & Resources $ 491.7 $ 508.7 $ 478.7 $ 519.6 $ 10.9 $ 40.9 Expenditures Total Departmental Costs Total General Charges Transfers Out $ 231.1 $ 160.6 99.1 234.6 $ 173.9 100.2 226.8 $ 167.4 100.2 237.6 $ 181.1 100.9 3.0 $ 7.2 0.7 10.8 13.7 0.7 Total Expenditures $ 490.8 $ 508.7 $ 494.4 $ 519.6 $ 10.9 $ 25.2 Surplus / (Deficit) $ 0.9 $ - (15.7) $ - $ 0.0 The Adopted Budget of $519.6 million for both estimated revenues and budgeted appropriations reflects an increase of $10.9 million, or 2.1 percent, over the prior year budget. Budgeted appropriations are $25.2 million, or 5.1 percent, over the 2019-20 year-end projection of $494.4 million. Estimated revenue for 2020-21 represents a $40.9 million, or 8.5 percent, increase compared to current year-end projected revenue of $478.7 million. The City reported a surplus of $0.9 million for fiscal year ended June 30, 2019 and projected a deficit for current fiscal year of $15.7 million as of March 31, 2020. Subsequently on June 24, 2020, New York State (the “State”) withheld 20% of the June State Aid and Incentives to Municipalities (“State AIM”) scheduled payment; the reduction amounted to $19.7 million. A 1 15.7 determination as to the extent of amount to be restored, if any, and timing of such restoration has not yet been made as to this withholding. Total budgeted appropriations of $519.6 million includes other financing uses (i.e., transfers out) of $100.9 million. This balance consists of four separate transfers: the annual transfer to the Buffalo City School District (the “District”) ($70.8 million), the transfer to the Debt Service Fund for the payment of principal and interest due in 2020-21 on outstanding debt ($29.4 million), a transfer to the Capital Projects Fund ($0.4 million), and a transfer for the payment of interest on the deficit note issued in fiscal year 2019-20 ($0.3 million). Total budgeted appropriations for transfers out on a year-to-year basis represent an increase of $0.7 million and is attributed to an increase in the transfer to the Debt Service Fund for principal and interest on debt in the amount of $0.4 million and interest on the deficit note in the amount of $0.3 million as no such note existed prior to 2019-20. The largest transfer out is to the District in the amount of $70.8 million. The District is a dependent school district, as established by New York State (the “State”), and cannot levy taxes; as such, it relies on an annual contribution from the City to partially fund operations. The City’s tax levy for 2020-21 is held flat at $147.9 million year-to-year, with the City retaining $77.1 million and the balance of $70.8 million being transferred to the District. The remaining operating budget, excluding transfers, provides a clearer picture of the amounts budgeted by the City for general operations and the provision of City-wide services. This remaining amount is $418.7 million, compared to $408.5 million in fiscal year (“FY”) 2020, and has increased $10.2 million, or 2.5 percent, on a year-to-year basis. The following chart provides a summary of the budget with respect to categorizing the specific areas of spending: The largest components of the budget are as follows: fringe benefits (31 percent), which includes health insurance for both active employees and retirees, pension contributions, employer payroll taxes, injured-on-duty payments, and other similar commitments; transfers out (19 percent); police department (17 percent); and fire department (12 percent). These four areas combined constitute 79 percent of the total budget. Public works comprises an additional 6 percent of total budgeted appropriations and utilities represents another 3 percent. All remaining departments and General Charges comprise the remaining 12 percent of expenditures. On a year-to-year basis, the expenditure categories remain relatively stable with changes ranging from 0.3 percent to 1.1 percent. 2 The following two charts provide a summary of the Adopted Budget with respect to total revenues and sources of those revenues: The chart illustrates the main sources of estimated revenue of $519.6 million by summarizing the various revenues according to the originating source. The impact from the COVID-19 pandemic is demonstrated through the significant fluctuations within categories. The total source of County revenue decreases from 17.7 percent of total estimated 2019-20 revenue and State revenue provided 37.7 percent of total estimated revenue in the prior year. The substantial offset is in Federal sources in anticipation of federal stimulus funding; Federal sources provided a minor 0.8% of estimated revenues in the prior year. The largest contributor of revenue to the City is the City itself, 38.6 percent, at $200.6 million, which is a decrease of $4.3 million from last year’s budgeted amount of $204.9 million. City revenue includes taxes (including property taxes), fines, licenses and permits, sale of land/assets, and various other miscellaneous revenue categories. The second largest revenue source to the City is the State, which is budgeted to provide $160.1 million, or 30.8 percent, of total estimated revenue to the City. This represents a decrease of $31.6 million, or 16.5 percent, from the prior year amount of $191.7 million. Total State Aid includes State Aid and Incentives to Municipalities (“State AIM”), Tribal State Compact (“TSC”) revenue or casino revenue, School Tax Relief (“STAR”) program revenue, traffic violation fines, grants and program specific funding. Estimated State AIM has been reduced by $32.3 million and STAR has been reduced by $0.5 million; this is offset by an increase of $1.2 million in estimated traffic violation fines. The third largest revenue contributor is Erie County (the “County”) at 13.8 percent, with the most significant revenue source being sales tax, providing for $71.4 million. Other revenues to the City bring the total contributed amount from the County to $71.9 million. Total County revenue is estimated to decrease $18.4 million, or 20.5 percent, in the 2020-21 Adopted Budget as compared to the prior year amount of $89.8 million. The significant decrease in sales tax is attributed to the economic recession due to COVID-19. The fourth largest revenue category is Federal revenue which is budgeted at $68.4 million, an increase of $64.4 million when compared to FY 2019-20 budgeted amount of $4.0 million. The significant increase year-to-year is attributed to the City budgeting $65.1 million in federal stimulus aid yet-to-be-approved by the federal government to address the decrease in revenue due to the COVID-19 pandemic. As of July 15, 2020, there was no indication that additional federal stimulus will be provided to the City of Buffalo as budgeted. Transfers in from the Enterprise Funds of $14.3 million, or 2.8 percent of total estimated revenues, includes transfers from the Water Fund ($7.6 million), the Parking Fund ($6.0 million) and the Solid Waste and Recycling Fund ($0.7 million). Transfers in are budgeted to increase by $1.0 million, or 7.7 percent, over the prior year. There are two items that result in the year-to-year increase: $0.7 million increase in the transfer from the Parking Fund which and a $0.3 million is increase in the transfer from the Water Fund. Other revenue of $4.3 million represents 0.8 percent of total estimated revenue for fiscal 3 year 2020-21 and represents service charges from other government entities. There were no significant categorical percentage changes from the prior year in either the transfers in or other categories. The next chart demonstrates the main categories of total estimated revenue of $519.6 million. The largest categories are State AIM, the real property tax levy and the School Tax Relief (“STAR”) program revenue, County sales tax and Federal stimulus. The City’s real property tax levy and STAR revenue accounts for 28 percent of total estimated revenues, State AIM accounts for 25 percent, sales tax provided by the County accounts for 14 percent and Federal stimulus accounts for 12 percent of total estimated revenues. These four revenue sources compose 79 percent of the City’s estimated revenues and in total remains unchanged although variances are noted within the categories. As compared to last year, State AIM as a percentage of total estimated revenue has decreased 6.7 percent, sales tax has decreased 3.7 percent, the property tax levy and STAR category has decreased 1.1%, and the all other category has decreased 1.0 percent; the decreases are offset by an increase of 12 percent for federal dollars largely consisting of federal stimulus related to COVID-19. The Adopted Budget maintains the City’s property tax levy, including STAR, at $147.9 million in 202021. The City’s available property tax margin is $107.9 million, representing an increase from the prior year’s available tax margin of $91.1 million of $16.8 million, or 18.4 percent. The City provides 47.9 percent of the tax levy to the District. The District’s debt service is equivalent to 6.1 percent of the tax levy, while 19.9 percent of the tax levy is assessed for the City’s debt service. From an operational standpoint, the City utilizes 32.2 percent of the levy while the District uses 41.8 percent of the tax levy for operations. The Adopted Budget utilizes 57.8 percent of the City’s constitutional taxing capacity, a decrease from the 61.9 percent utilized last year. For the year ended June 30, 2019, the City reported an increase in fund balance of $0.9 million. At June 30, 2019 the balance of the emergency stabilization fund (i.e., “Rainy Day Fund”) was $38.5 million, assigned fund balance was $13.0 million and unassigned fund balance was $0. The City issued a deficit note in the amount of $25.0 million in June 2020 in response to an expected deficit for 2019-20 largely related to the financial impact from COVID-19. In the event the deficit exceeds $25.0 million, the City will need to draw upon remaining unrestricted fund balance of $51.5 million. It is unknown if the State’s withholding of $19.7 million in State AIM payments is temporary or if it will be a permanent reduction for 2019-20. If it noted that a formal Rainy Day Fund policy related to the use of, and subsequent replenishment of these funds, has not been adopted. 4 Estimated Revenues The Adopted Budget includes total estimated revenues and other financing sources of $519.6 million, representing an increase of $10.9 million, or 2.1 percent, over the 2019-20 budget. The following schedule summarizes revenue by category and includes actual revenue for the fiscal year ended June 30, 2019, the adopted 2019-20 budget, the year-end projection for fiscal year 2019-20 as of March 31, 2020, and the 2020-21 Adopted Budget along with year-to-year variances. The 2019-20 year-end estimate does not reflect the withholding of approximately $19.7 million in State AIM; it is unknown when or if the City will receive the amount that was withheld from the June AIM payment. Fiscal Year Ended June 30, 2019 Actual 2019-20 Adopted Budget 2019-20 Year-End Estimate as of March 31, 2020 2020-21 Adopted Budget Increase/(Decrease) Budget to Budget Increase/(Decrease) over Year-End Estimate ($ in millions) Revenue Taxes Non-Property Taxes Licenses and Permits Intergovernmental Service Charges Fines Interest Miscellaneous Total Revenue $ Resources Transfers In Total Other Resources Total Revenue & Resources $ 156.7 $ 13.3 5.7 262.7 15.2 11.0 1.9 11.3 477.8 158.7 $ 11.6 6.2 269.0 20.0 13.7 1.2 15.0 495.4 157.8 $ 11.6 5.4 250.4 14.0 10.8 1.7 13.7 465.4 157.2 $ 11.6 5.4 285.3 15.3 15.5 1.0 14.0 505.3 13.9 13.9 13.3 13.3 13.3 13.3 14.3 14.3 491.7 $ 508.7 $ 478.7 $ 519.6 $ (1.5) $ (0.8) 16.3 (4.7) 1.8 (0.2) (1.0) 9.9 1.0 1.0 10.9 $ Revenues, excluding transfers in, are budgeted to increase $9.9 million, or 2.0 percent, and transfers in are projected to increase by $1.0 million, or 7.5 percent, for an increase of $10.9 million, or 2.1 percent, yearto-year. Total revenue in 2018-19 was $491.7 million consisting of $477.8 million of departmental revenue and $13.9 million from transfers in. Significant fluctuations noted in the revenue categories, as demonstrated in the table above, are discussed in further detail below as part of the 2021-2024 Financial Plan discussion. The following schedule is a summary by major revenue category of total projected revenue over the 20212024 Financial Plan. Total revenues over the Financial Plan are estimated to increase $10.5 million, or 2.0 percent, from $519.6 million to $530.1 million. Total projected revenue decreases $1.9 million (0.4 percent) in 2021-22 and increases $5.5 million (1.1 percent) and $6.9 million (1.3 percent) in 2022-23 and 2023-24, respectively. 5 (0.6) 34.9 1.3 4.7 (0.7) 0.3 39.9 1.0 1.0 40.9 2020-21 2021-22 2022-23 2023-24 Adopted Budget Projection Projection Projection REVENUE Taxes $ 157,190,897 Non Property Taxes 11,630,000 Licenses and Permits 5,434,464 Intergovernmental 285,278,968 Service Charges 15,243,848 Fines 15,481,925 Interest 1,000,000 Miscellaneous 14,006,882 Subtotal 505,266,984 Transfers In TOTAL $ Financial Plan 162,789,548 $ 165,700,951 11,630,000 11,630,000 5,488,809 5,543,697 274,036,014 261,890,218 15,501,339 15,755,607 18,383,675 18,486,333 1,000,000 1,000,000 14,111,636 28,052,386 502,941,021 508,059,192 $ 168,670,582 11,630,000 5,571,415 276,093,256 15,966,948 18,589,906 1,000,000 17,012,669 514,534,776 Four-Year Increase/(Decrease) $ $ 11,479,685 136,951 (9,185,712) 723,100 3,107,981 3,005,787 9,267,792 % 7.3% 0.0% 2.5% -3.2% 4.7% 20.1% 0.0% 21.5% 1.8% 14,283,560 14,664,084 15,063,634 15,515,543 1,231,983 8.6% $ 519,550,544 $ 517,605,105 $ 523,122,826 $ 530,050,319 $ 10,499,775 2.0% The following discussion addresses each individual revenue category and provides information regarding key revenue assumptions. Taxes – Taxes consist of the real property tax levy, mortgage tax, the School Tax Relief (“STAR”) program, payment-in-lieu-of-taxes (“PILOTs”) and interest and penalties. On a year-to-year basis taxes are decreasing by $1.5 million, or 0.9 percent, from $158.7 million in 2019-20 to $157.2 million in the 2020-21 Adopted Budget. Revenue for the Taxes category over the Financial Plan is estimated to increase $11.5 million, or 7.3 percent, from $157.2 million to $168.7 million. Taxes represent 30.3 percent of total revenues in fiscal year 2020-21 and increase to 31.8 percent by 2023-24. Taxes Real Property Tax STAR Mortgage Tax PILOTs All Other Taxes Total Taxes 2019-20 2020-21 2021-22 2022-23 2023-24 Adopted Budget Adopted Budget Projection Projection Projection Four-Year Increase/(Decrease) Financial Plan $ $ 139,465,000 $ 139,971,280 $ 145,570,131 $ 148,481,534 $ 151,451,165 $ 11,479,885 8,400,000 7,893,720 7,893,720 7,893,720 7,893,720 3,900,000 3,900,000 3,900,000 3,900,000 3,900,000 3,112,403 3,223,897 3,233,897 3,233,897 3,233,897 10,000 3,774,000 2,202,000 2,191,800 2,191,800 2,191,800 (10,200) 158,651,403 157,190,897 162,789,548 165,700,951 168,670,582 11,479,685 % 8.2% 0.0% 0.0% 0.3% -0.5% 7.3% The reduction of taxes by $1.5 million, or 0.9 percent, between 2019-20 and 2020-21 is attributed to a decrease of $1.6 million in interest and penalties on taxes and a decrease of $0.4 million in revenues from the STAR program. The reduction of $2.0 million is offset by an increase of $0.5 million in the real property tax. The City completed a full reassessment of City property values in fiscal year 2018 and the revised assessments are effective beginning with the 2020-21 budget. The maximum constitutional taxing power increased from $239.0 million in 2019-20 to $255.8 million, an increase of $16.8 million, or 7.0 percent while the available tax levying margin increased from $91.1 million to $107.9 million. The City maintained the real property tax levy at $147.9 million year-to-year; this amount includes both the real property tax and the STAR program combined. The City is currently utilizing 57.8 percent of the total available taxing levy. Both the homestead and non-homestead rates were reduced by the city-wide reassessment. The homestead rate was $18.47 per $1,000 of assessed value in 2019-20 and is $9.99 in the 2020-21 Adopted Budget. The non-homestead rate was $29.49 per $1,000 of assessed value in 2019-20 and is reduced to $16.75 per $1,000 of assessed valuation. 6 Taxes increase from $157.2 million in 2020-21 to $168.7 million in 2023-24, an increase of $11.5 million, or 7.3 percent. The increase is attributed to an annual increase of real property taxes, which are budgeted to increase by $5.6 million, or 4.0 percent, to $145.6 million in 2021-22. An increase of 2 percent is projected in years three and four, increasing real property taxes to $148.5 million in 2022-23 and $151.5 million in 2023-24. Total real property taxes are projected to increase by $11.5 million, or 8.2 percent over the Financial Plan. The remaining tax revenues are held flat over the Financial Plan and include the STAR program at $7.9 million, mortgage tax at $3.9 million and PILOTs at $3.2 million. Intergovernmental – Intergovernmental revenue consists of State AIM, sales tax, Tribal State Compact (i.e., casino) revenue and federal aid. This revenue category fluctuates annually, decreasing by $11.3 million (4.0 percent) in 2021-22, decreasing further by an additional $12.2 million (4.5 percent) in 202223, and increasing $14.2 million (5.4%) in 2023-24. Intergovernmental revenues represent 54.9 percent of total revenue in fiscal year 2020-21 and decrease to 52.1 percent of the budget by fiscal year 2023-24. The following schedule summarizes the budgeted and projected individual revenues comprising the Intergovernmental revenue category. 2019-20 Adopted Budget Intergovernmental State AIM Sales Tax TSC - Casino Revenue Federal Stimulus FEMA Reimbursement All Other Total Intergovernmental 2020-21 Adopted Budget 2021-22 2022-23 2023-24 Projection Projection Projection Four-Year Increase/(Decrease) Financial Plan $ % $ 161,285,233 $ 129,028,186 $ 139,028,186 $ 149,028,186 $ 161,285,233 $ 32,257,047 25.0% 89,800,000 71,440,000 91,226,000 93,050,520 94,911,530 23,471,530 32.9% 11,000,000 11,000,000 35,000,000 11,000,000 11,055,000 55,000 0.5% 65,082,569 (65,082,569) -100.0% 10,000 1,500,000 1,500,000 1,500,000 1,500,000 0.0% 6,915,062 7,228,213 7,281,828 7,311,512 7,341,493 113,280 1.6% 269,010,295 285,278,968 274,036,014 261,890,218 276,093,256 (9,185,712) -3.2% The City budgeted $269.0 million in Intergovernmental revenue in 2019-20 and budgeted an increase of $16.3 million, or 6.0 percent, to $285.3 million in 2020-21. Both State AIM and sales tax have been reduced to reflect the estimated financial impact from the COVID-19 pandemic. State AIM is reduced by $32.3 million, or 20 percent; sales tax is reduced by $18.4 million, or 20.4 percent. The budget includes $65.1 million of federal stimulus funding that has yet to be approved by the U.S. Senate. In addition to those revenue sources, the City has increased reimbursements from the Federal Emergency Management Agency by $1.5 million. The City included $65.1 million in federal stimulus aid in fiscal year 2020-21 as a non-recurring revenue. At this time the U.S. House of Representatives has passed the HEROES Act, which would provide additional aid to state and local governments that have been negatively impacted by the COVID-19 pandemic and the resulting shut-down of businesses. Members of the local federal delegation have cited support for the City of Buffalo; however, it is unknown when or if the legislation will be passed and if it is passed, the amount to be provided and the timing is unknown, although it would be anticipated during 2020-21. The budgeted amount of federal stimulus includes the assumed reduction of $32.3 million of State AIM, the estimated reduction of sales tax of $18.4 million, and a remaining amount of $14.4 million. 7 The City estimated a decrease in State AIM of $32.3 million in fiscal year 2020-21 and projects increases in each subsequent year of the Financial Plan, increasing from $129.0 million in year one to $139.0 million in year two, $149.0 million in year three and a return to the current AIM allocation of $161.3 million in year four. State AIM was reduced by the State in fiscal year 2012 and has been held flat at $161.3 million through 2019-20. The City did not receive the full appropriation of $161.3 million for fiscal year 2019-20 as the State withheld 20 percent, or $19.7 million, of the scheduled State AIM payment for June 2020; it is currently unknown if these funds will be remitted and/or to what extent. Due to the far reaching financial impact of the COVID-19 pandemic, it is unknown what the impact on State aid to localities will be over the next several years. The State’s FY 2020 Enacted Budget Financial Plan provides for an $8.2 billion recurring reduction to aid to localities over the next four State fiscal years; furthermore, the State has indicated additional reductions to aid to localities may be necessary depending on the extent of the financial impact from the pandemic. The City’s Financial Plan is inconsistent with the State’s financial plan. Over the Financial Plan, State AIM is budgeted to increase $32.3 million, or 25.0 percent. The TSC casino revenue is included in each year of the Financial Plan, increasing from $11.0 million in year one to $35.0 million in year two, and then returning to an annual revenue amount of $11.0 to $11.1 million in the final two years of the Financial Plan. The City included all outstanding casino revenue due to the City in year two of the Financial Plan, which totals approximately $24.0 million. The $7.5 million received by the City in fiscal year 2018-19 was advanced by the State as the Seneca Gaming Corporation has not remitted casino revenue to the State since December 2016. The timing of receipt of these funds is unknown as the dispute between the State and the Seneca Gaming Corporation continues. Sales Tax is estimated to increase $23.5 million, or 32.9 percent over the Financial Plan. The budget amount was reduced by $18.4 million in the first year of the Financial Plan to $71.4 million as compared to the 2019-20 budget amount of $89.8 million. The City estimates that sales tax will rebound in year two of the Financial Plan to pre-pandemic levels and has increased this revenue by $19.8 million, or 27.7 percent. The City included moderate increases of 2 percent in years three and four of the Financial Plan. It is unknown when, or if, sales tax will resume to pre-pandemic levels in the near-term; the assumption of a return to normal in year two is not in alignment with current projections by economists; this assumption is carried forward into years three and four. All other intergovernmental revenue is increasing from $7.2 million to $7.3 million, an increase of $0.1 million, or 1.6 percent. Over the course of the Financial Plan intergovernmental revenue decreases from $285.3 million to $276.1 million, a decrease of $9.2 million or 3.2 percent. Fines – Fines include parking tags fines and penalties, traffic violations fines, school zone camera fines, court fines and several other fines. Over the Financial Plan Fines increase $3.1 million, or 20.1 percent, from $15.5 million in 2020-21 to $18.6 million in 2023-24. Fines represent 3.0 to 3.5 percent of total revenues over the Financial Plan. 2019-20 Adopted Budget Fines Parking Tags Fines & Penalties Traffic Violations Fines School Zone Cameras Court Fines All Other Fines Total Fines 2020-21 Adopted Budget 2021-22 2022-23 2023-24 Projection Projection Projection Four-Year Increase/(Decrease) Financial Plan $ 7,900,000 3,300,000 400,000 740,000 1,398,200 13,738,200 $ 7,900,000 4,500,000 2,300,000 275,000 506,925 15,481,925 $ 7,979,000 4,522,500 5,100,000 275,000 507,175 18,383,675 8 $ 8,058,790 4,545,113 5,100,000 275,000 507,430 18,486,333 $ $ 8,139,378 4,567,838 5,100,000 275,000 507,690 18,589,906 $ % 239,378 67,838 2,800,000 765 3.0% 1.5% 121.7% 0.0% 0.2% 3,107,981 20.1% Fines represent approximately 3.0 percent of budgeted revenue in 2020-21 and are increasing $1.7 million, or 12.7 percent, to $15.5 million, over the 2019-20 budget amount of $13.7 million. The year-toyear increase is attributed to an increase of $1.2 million for traffic violations fines and an increase of $1.9 million for the school zone cameras. The increase for traffic violations is attributed to the implementation of the new school bus cameras installed on the crossing arm of Buffalo City School District buses. The company that was awarded the contract guaranteed a $2.5 million payment to the City in the first year of the program, with a revenue sharing agreement over the remaining years of the Financial Plan. All other traffic violations are decreasing on a net basis of $0.3 million. As a reference, traffic violations were averaging $255,000 per month in 2019-20 prior to the pandemic, which would be equivalent to a year-end total of $3.1 million, which is $0.2 million less than what was budgeted for in 2019-20. There is a concern with the revenue estimate of $2.3 million for the school zone cameras fines in 2020-21 and $5.1 million in the remaining years, since Common Council did modify the local law governing the use of speed zone cameras to the first two hours of the school day and the last two hours of the school day, and not for a full 8 to 10 hours as initially implemented this past spring. Additionally, it is unknown what the school year will be with respect to reopening in September. Based on limited implementation during the spring of 2020, the City has provided an estimate that supports an increase to the $2.3 million amount as long as the school zone is enforced throughout the entire school day. Over the Financial Plan Fines are increasing from $15.5 million to $18.6 million, an increase of $3.1 million, or 20.1 percent. The increase is primarily related to the inclusion of the school bus crossing cameras that will be added to school buses to monitor and ticket drivers that illegally pass stopped school buses. The company that was awarded the contract for the installation of the cameras and administering the program guaranteed $2.5 million in year one of the implementation, which is fiscal year 2020-21. There is no guarantee from the company beyond year one, however the assumption is that there will be enough violators to garner the same amount of revenue over the remaining three years of the Financial Plan. All other fines are consistent over the Financial Plan, with an increase of $0.2 million, or 3.0 percent for parking tags fines and penalties. Miscellaneous – Miscellaneous revenue includes grant reimbursements, sale of land, property and other capital assets, settlements of legal claims, and a myriad of other revenue sources. The Miscellaneous revenue category fluctuates annually over the Financial Plan and represents 2.7 percent of total budgeted revenues in 2020-21 and 2021-22, 5.4 percent in 2022-23 and 3.2 percent in 2023-24. 2019-20 Adopted Budget Miscellaneous Grant Reimbursement $ Sale of Capital Assets Settlement of Legal Claims All Other Misc. Total Miscellaneous 1,117,795 6,900,000 300,000 6,685,378 15,003,173 2020-21 Adopted Budget $ 4,510,595 3,515,000 300,000 5,681,287 14,006,882 $ 2021-22 2022-23 2023-24 Projection Projection Projection Financial Plan 4,510,595 $ 4,510,595 3,515,000 17,345,000 300,000 300,000 5,786,041 5,896,790 14,111,636 28,052,385 Four-Year Increase/(Decrease) $ $ 4,510,595 3,515,000 3,000,000 5,987,104 17,012,699 $ 2,700,000 305,817 % 0.0% 0.0% 900.0% 5.4% 3,005,817 21.5% On a year-to-year basis Miscellaneous revenues are decreasing by $1.0 million, or 6.7 percent. There is a budgeted decrease of $3.4 million for the sale of capital assets. The sale of capital assets is a one-time resource, and the decrease year-to-year is attributed to the sale of two City-owned properties in 2019-20. The amount of $3.5 million included in the 2020-21 Adopted Budget is reflective of what the City expects to receive for the tax foreclosure sale. During 2019-20, the City implemented a new tax foreclosure process resulting in approximately $3.4 million in revenue in fiscal year 2019-20. The decrease in the sale of capital assets is offset by an increase of $3.4 million in grant reimbursement. The 9 increase over the first three years of the Financial Plan is driven by the Staffing for Adequate Fire & Emergency Response (“SAFER”) grant that was awarded to the City. The initial SAFER grant was in the amount of $9.0 million over three-years. The City utilized $1.2 million in 2019-20, and budgeted $3.0 million in fiscal years 2021 and 2022, and the balance of $1.8 million in 2024. In addition to the SAFER grant the City has received notice that it has been awarded an additional $0.8 to $1.0 million in fiscal years 2023 and 2024 for personal safety/protection equipment for the fire department. This amount of $4.5 million is held flat over the Financial Plan. Gifts and donations are being reduced by $1.0 million year-to-year to more accurately reflect actual commitments that will be received in fiscal year 2020-21. Over the course of the Financial Plan Miscellaneous revenue is consistent between fiscal years 2021 and 2022 at $14.0 to $14.1 million annually, increases to $28.1 million in fiscal year 2023 and decreases to $17.0 million in 2024. The aforementioned miscellaneous revenues are constant across the Financial Plan, except for the sale of capital assets and settlement of legal claims. In fiscal year 2022-23 the City included $13.9 million for the sale of properties with the expectation that the sales will be completed during that year. As demonstrated in recent years it is difficult to accurately predict from a revenue timing perspective when a marketed property will be sold and closed on. The City included $3.0 million in legal settlement claims for a settlement regarding litigation involving the opioid crisis in 2023-24. All other miscellaneous revenue is consistent over the Financial Plan. All Other Remaining Revenue Categories – The following schedule includes the remaining revenue categories including non-property taxes, licenses and permits, service charges and earned interest. There are minimal variances in these revenue lines in the Financial Plan and in total those revenues comprise $33.3 to $34.2 million annually and comprise approximately 6.4 percent of total projected revenue over the course of the Financial Plan. 2019-20 Adopted Budget Remaining Revenues Service Charges Non-property Taxes Licenses & Permits Interest Total $ 2020-21 Adopted Budget 20,012,575 $ 15,243,848 $ 11,610,000 11,630,000 6,189,545 5,434,464 1,200,000 1,000,000 39,012,120 33,308,312 2021-22 2022-23 2023-24 Projection Projection Projection Financial Plan 15,501,339 $ 15,755,607 $ 11,630,000 11,630,000 5,488,809 5,543,697 1,000,000 1,000,000 33,620,148 33,929,304 15,966,948 11,630,000 5,571,415 1,000,000 34,168,363 Four-Year Increase/(Decrease) $ $ 723,100 136,951 - % 4.7% 0.0% 2.5% 0.0% 860,051 2.6% On a year-to-year basis Service Charges are decreasing from $20.0 million in 2019-20 to $15.2 million in 2020-21, a reduction of $4.8 million, or 23.5 percent. Of this amount, a decrease of $1.9 million is attributed to the rental dwelling unit registry, specifically the default mortgage fee. The City has revised estimated revenue from $2.4 million to $0.5 million for this program. The City has eliminated the entertainment surcharge fee that was included in both the 2019 and 2020 budgets resulting in a reduction of $0.7 million. In addition, estimates for parking meter fees were adjusted downward by $0.5 million and the public utility inspection fee was reduced by $0.4 million. All other service fees are decreasing by $1.3 million on a net basis year-to-year. These reductions in service charges adjust the 2020-21 Adopted Budget to be more in line with actual 2019 revenue receipts. Over the Financial Plan Service Charges increase from $15.2 million to $16.0 million in 2023-24, an increase of $0.7 million, or 4.7 percent. Increases over the Financial Plan are attributed to an increase of $0.4 million for parking meter fees and an increase of $0.1 million for indirect services to the Buffalo Sewer Authority with all other service charges increasing by $0.2 million. 10 Non-property taxes represent 2.2 percent of total revenues and are held flat at $11.6 million between 2019-20 and 2020-21, as well as across the Financial Plan. This revenue stream is comprised of class I utility taxes of $8.0 million, cable franchise tax of $2.9 million and the foreign fire insurance tax of $0.7 million. These amounts are budgeted consistent to prior years and there is no variance in these revenues over the Financial Plan. Licenses and permits are decreasing by $0.8 million, or 12.9 percent, from $6.2 million to $5.4 million, when comparing the 2019-20 and the 2020-21 adopted budgets. The decrease is attributed to a decrease of $0.4 million in building permits due to a lower volume of building permits being requested and a decrease of $0.2 million for street permits attributed to a new loading zone fee the City planned to implement in 2019-20 that was not enacted. All other licenses and permits are decreasing by $0.2 million on a net basis and there are no other significant revenue changes year-to-year. Permits represent 1.0 to 1.1 percent of total revenue across the Financial Plan. They are projected to increase $0.1 million over the Financial Plan. Earned Interest income is budgeted to decrease by $0.2 million from $1.2 million in 2019-20 to $1.0 million in 2020-21. Interest income is budgeted at $1.0 million over the Financial Plan and represents 0.2 percent of budgeted revenue. Operating Transfers In – Operating Transfers In include transfers in from three of the City’s enterprise funds including the water, parking and the solid waste and recycling enterprise funds. Operating Transfers In increase $1.0 million from $13.3 million in 2019-20 to $14.3 million 2020-21 due to an increase of approximately $350,000 from the water enterprise fund and $650,000 from the parking enterprise fund. Over the Financial Plan Transfers In increase from $14.3 million in fiscal year 2020-21 to $15.5 million in 2023-24, an increase of $1.2 million, or 8.6 percent. Transfers in represent 2.7 to 2.9 percent of total revenue and resources over the Financial Plan. 2019-20 Adopted Budget Transfers In Water Board Parking Fund Solid Waste Fund Total Transfers In $ 2020-21 Adopted Budget 7,248,078 $ 5,346,490 673,078 13,267,646 7,610,482 $ 6,000,000 673,078 14,283,560 2021-22 2022-23 2023-24 Projection Projection Projection Financial Plan 7,991,006 $ 8,390,556 $ 6,000,000 6,000,000 673,078 673,078 14,664,084 15,063,634 Four-Year Increase/(Decrease) $ 8,642,273 $ 1,031,791 6,180,000 180,000 693,270 20,192 15,515,543 1,231,983 % 13.6% 3.0% 3.0% 8.6% Transfers in from the water enterprise fund are projected to increase from $7.6 million in 2020-21 to $8.6 million in fiscal year 2023-24, an increase of $1.0 million or 13.6 percent. The transfers in from the parking enterprise fund are increasing from $6.0 million in 2020-21 to $6.2 million in 2023-24, an increase of $0.2 million or 3 percent. The solid waste fund transfer in is minor over the Financial Plan, increasing by $20,000, or 3 percent. 11 Over the Financial Plan, the City has included certain revenue estimates that are either untested and/or difficult to estimate, require action at the federal or state level, or are based on assumptions that are inconsistent with available external information. With respect to the untested revenues, particularly the new traffic violation revenue from the school bus crossing cameras and fines from school zone cameras, it is recommended the City closely monitor these revenues and revise the Financial Plan if necessary. The following schedule summarizes the speculative revenue as discussed over the Financial Plan: City of Buffalo 2021-2024 Financial Plan Summary of Uncertain Revenue Estimates 2020-21 2021-22 2022-23 2023-24 Total Federal Aid 65,082,569 65,082,569 Tribal State Compact (i.e., Casino) Revenue 11,000,000 35,000,000 11,000,000 11,055,000 68,055,000 State AIM Increase - 10,000,000 20,000,000 32,257,047 62,257,047 Sales Tax Increase * Total Uncertain Revenue 76,082,569 45,000,000 31,000,000 43,312,047 195,394,616 Percent of Total Estimated Revenues 14.6% 8.7% 5.9% 8.2% * Impact on sales tax is unknown/unable to be predicted 12 Expenditures The City adopted a budget that totals $519.6 million in total General Fund expenditures. The following table identifies expenditures by department and various General Charges that are budgeted centrally for the City, such as utilities and fringe benefits. Fiscal Year Ended June 30, 2019 Actual Departments Common Council City Clerk Mayor & Executive Audit & Control Law Assessment MIS Administration & Finance Parking Police Fire Human Resources Public Works Community Services Permits & Inspections TOTAL DEPARTMENTS $ GENERAL CHARGES Grants In Aid Utilities Services Other Fringe Personal Services Fringe Benefits: Active Employee Health Insurance Retiree Health Insurance FICA & Medicare Payroll Taxes Employment Retirement System Police & Fire Retirement System All Other Fringe Benefits Debt Service Subtotal General Charges Interfund Transfers Out - Education Interfund Transfers Out - Other Subtotal Transfers Out TOTAL GENERAL CHARGES AND TRANSFERS OUT TOTAL BUDGET $ 2.3 $ 2.3 4.7 2.8 3.2 2.4 4.1 8.9 2.8 89.8 61.4 5.0 31.8 4.1 5.5 231.1 2019-20 Year-End Estimate 2020-21 as of March 31, 2020 Adopted Budget ($ in millions) 2019-20 Adopted Budget 2.5 $ 2.9 5.5 3.6 3.3 2.7 5.6 10.0 3.2 89.6 58.5 5.6 31.0 4.8 5.8 234.6 2.4 $ 2.7 5.2 3.2 3.1 2.5 5.3 9.2 2.8 84.8 61.8 4.4 29.3 4.6 5.5 226.8 2.8 $ 2.8 5.7 3.9 3.1 2.5 5.8 12.5 3.4 86.1 63.1 5.1 30.6 4.4 5.8 237.6 0.4 15.9 1.3 3.3 5.5 1.1 17.1 1.4 2.7 6.2 0.4 15.6 1.4 6.9 5.7 0.3 16.6 1.4 2.7 6.0 40.0 36.6 14.2 7.8 28.3 7.2 0.1 160.6 70.8 28.3 99.1 38.5 38.5 14.9 10.3 31.3 11.5 0.4 173.9 70.8 29.4 100.2 35.7 38.6 14.4 9.0 29.5 10.1 0.1 167.4 70.8 29.4 100.2 259.7 274.1 490.8 $ 508.7 $ Increase/(Decrease) Budget to Budget Increase/(Decrease) over Year-End Estimate 0.3 $ (0.1) 0.2 0.3 (0.2) (0.2) 0.2 2.5 0.2 (3.5) 4.6 (0.5) (0.4) (0.4) 3.0 0.4 0.1 0.5 0.7 0.5 3.3 0.6 1.3 1.3 0.7 1.3 (0.2) 0.3 10.8 (0.1) 1.0 (4.2) 0.3 39.0 45.7 14.3 10.3 31.5 13.1 0.2 181.1 70.8 30.1 100.9 (0.8) (0.5) (0.2) 0.5 7.2 (0.6) 0.2 1.6 (0.2) 7.2 0.7 0.7 3.3 7.1 (0.1) 1.3 2.0 3.0 0.1 13.7 0.7 0.7 267.6 282.0 7.9 14.4 494.4 $ 519.6 $ 10.9 $ The expenditures included in the Adopted Budget appear reasonable. The 2020-21 Adopted Budget increases expenditures by $25.2 million when compared to the third quarter year-end estimate of $494.4 million. Departmental costs are increasing by $10.8 million, General Charges are increasing by $13.7 million and Transfers Out are increasing $0.7 million. The Adopted Budget amount of $519.6 million is an increase of $10.9 million compared to the 2019-20 Adopted Budget amount of $508.7 million. Departmental expenditures are budgeted to increase $3.0 million, or 1.3 percent. Departmental increases are attributed to personal service costs. General Charges are increasing $7.2 million, or 4.1 percent, and transfers out are increasing $0.7 million, or 0.7 percent. 13 25.2 Departmental Costs At the departmental level, total budgeted appropriations are $237.6 million, an increase of $3.0 million over last year’s adopted budget of $234.6 million, representing an increase of 1.3 percent. Total actual departmental spending for 2018-19 was $231.1 million; the adopted 2020-21 budget amount of $237.6 million reflects an increase of $6.5 million, or 2.8 percent. Of the increase in departmental costs of $3.0 million, $2.1 million, or 70.8 percent, is attributed to personal service costs. Supplies are increasing $1.7 million, or 15.4 percent. Capital outlay is decreasing $0.5 million, or 18.9 percent and services are decreasing $0.4 million, or 1.4 percent. The budget reflects the additional labor costs associated with the various collective bargaining agreements (“CBAs”) settled over the past several years. These increased costs associated with salary increases are offset with lower starting salaries for new employees. Currently there are three contracts that are settled through the end of 2020-21, including Local 282 (firefighters), Local 650 (white-collar), and Local 264T (pipe caulkers). The remaining five collective bargaining groups are all out contract at this time with two expiring on June 30, 2019 including the Police Benevolent Association (police officers), and Local 264 (blue-collar); the contract with the Crossing Guards expired August 31, 2019. Two CBAs expired on June 30, 2020, including Local 2651 (building inspectors) and Local 17 (operating engineers). The City has incorporated various management tools into the CBA’s to improve efficiencies and to control expenditures. Some examples of these management tools include a residency requirement for all new police and fire personnel, elimination of health insurance in retirement for new hires, a 24-hour shift schedule for the fire department and requiring employee contributions for health insurance. It is noted, that the residency requirement for police officers lapsed when the CBA with the PBA expired on June 30, 2019. In addition, all contracts have moved beyond the previously typical five step salary schedule before an employee reaches the top salary step with all new hires now on an extended schedule that requires at least seven years of service prior to an employee reaching the top step, resulting in lower initial salaries for new hires. The police department on a year-to-year basis is decreasing by $3.5 million, or 3.9 percent, in 2020-21 for a total departmental cost of $86.1 million. The decrease in the police department is attributed to the increased number of patrol officers at lower steps compared to the positions that were included in the 2019-20 budget. The City has experienced attrition in the police department and had over 100 vacancies in the department during 2019-20. The fire department is increasing by $4.6 million, or 7.9 percent; this increase is related to the negotiated 4.0 percent salary increase for Local 282. Police expenditures total 16.6 percent of the total budget amount of $519.6 million, and the fire department expenditures total 12.1 percent of total expenditures. On a combined basis both departments total $149.2 million, or 28.7 percent, of total budgeted expenditures for the City in 2020-21. The Police Benevolent Association, (the “PBA”) has been out of contract since June 30, 2019. The firefighter’s union, Local 282, is currently under contract through June 30, 2025. Budgeted appropriations in the administration and finance department are increasing by $2.5 million, or 25.0 percent, and is attributed to increased costs associated with purchasing of supplies of $2.5 million when compared to fiscal year 2019-20. Part of the increase is related to the COVID-19 pandemic and the City has budgeted for the costs associated with purchasing additional cleaning/disinfecting supplies and personal protection equipment for the City’s workforce. All other administration and finance department costs are decreasing by less than $0.1 million on a net basis. The remaining 12 departments are budgeted to decrease by $0.6 million, or 0.3 percent. There are no other significant departmental variances noted. 14 General Charges The City’s General Charges, excluding transfers out, are budgeted to increase $7.2 million, or 4.1 percent year-to-year. Fringe benefits are increasing by $8.9 million, or 6.1 percent, and all other General Charges are reduced by $1.7 million, or 1 percent on a net basis. In regard to fringe benefits the largest cost escalator is the retiree health insurance, which is budgeted to increase $7.2 million, or 18.7 percent, in 2020-21. The City utilized a rate increase of 6.6 percent for health insurance, which is approximately $2.5 million. In addition, the City Administration lost in arbitration with the fire department concerning the payment of Medicare Part B rates; the arbiter found in favor of Local 282 and the City is required to pay the costs for retirees’ Medicare Part B rates with the resulting increase to the City estimated to be between $1.5 and $2.0 million. In addition, there were deferrals of elective surgeries in fiscal year 201920 that will be performed in 2020-21 and are estimated to be approximately $2.0 million. The remaining increase of $0.7 million is attributed to increased utilization as more City employees retire. Active employee health insurance is projected to increase $0.5 million, contributions to the police and fire retirement system (pension contributions) are projected to increase by $0.2 million, and employer payroll taxes are budgeted to decrease by $0.6 million. The salary adjustment line is budgeted to increase by $1.6 million to $4.9 million in 2020-21 and reflects resources to be utilized for negotiating with unions out of contract. The remaining General Charges are budgeted to decrease by $1.7 million on a net basis. Grants in aid are being reduced from $1.1 million to $0.3 million, a reduction of $0.8 million. Utilities are being reduced by $0.5 million. Both duty-disability payments and debt service are budgeted to decrease by $0.2 million each. Transfers Out are budgeted to increase by $0.7 million, for a total of $100.9 million, which is attributed to the increase for the transfer to the capital debt service fund of $0.4 million and the interest cost associated with the City’s issuance of a deficit note in fiscal year 2019-20. There are four components to Transfers Out including $29.4 million for capital debt service fund, $70.8 million for the transfer to the Buffalo City School District, $0.4 million for the capital projects fund, and $0.3 million for the interest on the deficit note. Both the transfer to the District and capital projects fund are maintained at previous year levels. Employee-Related Costs The vast majority of expenditures in the City budget are employee-related costs. Direct employee salaries and wages, coupled with fringe benefits such as health insurance, dental insurance, life insurance and pension, represent 85.2 percent of the City’s General Fund expenditures exclusive of transfers. The City’s historic employee-related costs average between 84-87% of total operational costs annually. The 2020-21 Adopted Budget includes $356.6 million in direct salary and fringe benefit costs, which are in total increasing by $10.7 million, or 3.1 percent, over the amount budgeted in 2019-20 of $345.9 million. The increase is reflective of several items leading to the overall net increase. As previously discussed, the budget for both the fire and police departments personal service costs are increasing on a year-to-year basis by a combined $2.3 million. Additionally, the salary adjustment line for negotiating labor contracts is increasing $1.7 million; budgeted pension expenditures are increasing by $0.2 million due to increased filling of budgeted positions in the fire and police departments and health insurance in total is budgeted to increase by $7.6 million. These increases are offset by decreases totaling $1.0 million in remaining budgeted departmental costs and fringe benefits, all of which are moderate, and no unusual fluctuations are noted. 15 Personal services, representing salaries and wages and includes injured-on-duty salary payments, are increased by 0.9 percent, or $1.9 million, from the 2019-20 budget amount of $200.9 million for a total of $202.8 million in the 2020-21 Adopted Budget. The City has included increases in the departments that have employees under contract. The increases average 2.0 percent annually, except for the fire department which increases by 4.0 percent annually based on contractually-based salary increases. The following chart demonstrates the percentage of the total budget, less transfers out, that is comprised of employee costs: The Adopted Budget includes a decrease of eight full-time equivalent positions (“FTEs”) as compared to the 2020 adopted budget, which will be further discussed in detail in the staffing section of this report. Personal service (“PS”) costs for the police department are budgeted for $3.1 million (3.7 percent) less than the prior year; it is noted these costs are primarily for the uniformed officers but also include the civilians that work within the department. Annual salary is budgeted to decrease by $3.4 million, of which holiday pay and longevity are reduced by a combined $0.3 million. These reductions are reflective of senior officers retiring and being replaced by new officers and are offset by a $0.5 million increase for overtime and $0.2 million for court time. In addition, the field training officer line is decreased $63,000 and is funded at $86,400. All other salary lines within the police department are decreasing by $10,200 on a net basis. The labor contract with police officers expired on June 30, 2019 and current negotiations are before a mediator. The City has approximately fifty police recruits that began their academy training in January 2020 which was paused due to the COVID-19 pandemic. The recruits resumed their academy training in July and are slated to complete their classroom training by the end of August, at which point they will begin their field training with a senior officer. The City intends to begin an additional police recruit class, but the details of that class have not been finalized at this time. The earliest a class could begin would be in January 2021, and the number of recruits would be dependent on the number of available slots through the Erie Community College academy program. The City has budgeted $10.0 million for police overtime for 2020-21. Overtime was budgeted at $9.5 million for the 2019-20 fiscal year and is projected to be consistent with the budget. Overtime was initially projecting to be over budget for 2019-20 through the first half of the year, but due to hiring of new, additional police officers and management’s focus on community policing as opposed to special operations, a decrease in overtime has occurred. The COVID-19 pandemic significantly reduced overtime between March and April, with an increase in overtime in May and June in response to the social unrest and community protesting occurring in the City of Buffalo. Overtime has historically been under budgeted and has been funded largely through departmental vacancies and fund balance. The fire department’s budgeted personal service costs, including both firefighters and the civilian workforce, is budgeted at $61.1 million, which is increasing by $5.4 million. The fire department currently has four vacant positions as of June 30, 2020 with no plans to run a new fire recruit class during 2020-21. 16 Annual salaries are budgeted to increase by $6.1 million and overtime is decreased by $0.2 million. All other costs for the fire department are decreasing on a net basis by $475,000. The increase in annual salaries is reflective of nearly a 100 percent fill rate for the budgeted firefighters and the annual four percent increase per the negotiated labor contract. Historically, policies for controlling overtime and sick leave use have proven insufficient in reducing related expenditures. Under the most recent labor agreement with the firefighter’s union, firefighters have moved to a 24-hour shift schedule as well as agreed to an enhanced home confinement policy, and also agreed to a maximum number of firefighters that can be granted paid-time off per shift. In addition, the City still has the option of closing a fire house and reassigning those firefighters to other firehouses if call-ins are excessive. With the influx of new firefighters and the transition to a 24-hour schedule, the average overtime expenditure per pay period has continued to decrease, with the average decreasing from $316,243 to $281,091 year-to-year. Overtime was budgeted at $4.4 million for 2018-19 of which $8.2 million was expended, reflecting an overage of $3.8 million in firefighter overtime. The 2019-20 yearend estimate is between $7.3 million and $7.6 million, which is $2.8 to $3.1 million over the budgeted amount of $4.6 million. Similar to the police department, in prior years the City would use vacancy savings to cover overages in overtime; due to the increase in fire trainees, vacancy savings are not projected to be available to cover the budget gap in 2019-20. From 2019-20 to 2020-21, the City has increased budgeted overtime for police by $530,000 and has decreased fire overtime by $250,000 for a total of $10.0 million and $4.9 million, respectively. Overtime continues to be an area of concern as it historically has been under-budgeted. The City did not achieve the estimated savings it had projected with the most recent Firefighters contract. It is recommended that the City closely monitor overtime and revise the Financial Plan if necessary All other expenditures including services, supplies, capital outlay and travel comprise the remaining 14.8 percent of the budget, or $62.0 million. The following chart provides historical context in regard to the City’s personnel costs over the past nine years. Employee costs for active employees have increased annually with total personnel service costs increasing by $24.8 million (13.9%) and fringe benefits for active employees increasing by $21.5 million (17.6%). Personnel service costs have increased as a result of the settlement of employee contracts over the past decade. Fringe benefit costs increases are largely a result of health insurance costs and to a lesser extent pension contributions and employer payroll taxes. In FY 2012, actual employee costs totaled $270.9 million; compared to the adopted 2020-21 budget of $306.0 million, this represents an increase of $35.1 million (13.0 percent) over the ten-year period. More specifically, employees’ salaries and compensation have increased from $178.0 million to $202.8 million, or $24.8 million (13.9 percent) over this period, while fringe benefits have increased from $86.8 million to $108.1 million or $21.5 million (17.6 percent). On a year-to-year basis, budgeted employee compensation is increasing by $2.1 million and fringe benefits are increasing by $8.9 million of which the largest increase in in retiree health insurance at $7.1 million. Additional increases include the salary adjustment line of $1.7 million, active employee health insurance of $0.6 million, and NYSPFRS pension contributions of $0.2 million. These increases are offset by decreases for employer payroll taxes of $0.6 million. All other fringe benefits are consistent year-to-year, with a net decrease of less than $0.1 million. 17 *Eliminates retiree health insurance from total PS costs. In 2011-12, the average actual cost per employee for salary and fringe benefits was $111,929. For the upcoming 2020-21 fiscal year, the average budgeted cost per City employee is $116,268, an increase of $4,339, or 3.9 percent as compared to 2011-12. The moderate employee cost increases over the last tenyear period is attributed to lower overall salaries resulting from turnover and the resulting lower salary structure and lower pension costs due to the State’s implementation of Tiers 5 and 6 within the retirement systems which require lower employer contributions. The figures above exclude retiree health insurance costs to reflect the total cost per active employee. The amount budgeted for health insurance for retirees for 2020-21 is increased by $7.1 million (2.0 percent) from the prior year; the total amount budgeted is $45.7 million. Health insurance for active employees is budgeted at $39.0 million in 2020-21, an increase of $0.6 million (1.6 percent) compared to the 2018-19 budget amount of $38.4 million. The chart below provides a ten-year schedule of health insurance costs, with actual amounts provided for 2012 to 2019 and budgeted amounts for 2020 and 2021. Health insurance is budgeted to increase by $18.3 million (27.5 percent) over the actual amounts incurred in 2011-12. The actual increase from 2012 to 2019 was $10.2 million, or 13.2 percent. It is noted the City became self-insured for health insurance on January 1, 2016 and self-insured for prescription drug coverage on September 1, 2011. The City has purchased a stop-loss insurance policy to mitigate the exposure to the City for unpredictable and high cost claims. 18 Health Insurance FYE Active Retiree Total ACTUAL Projected 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $ 29.7 $ 28.4 $ 28.6 $ 28.8 $ 29.7 $ 35.6 $ 36.7 $ 36.5 $ 38.5 $ 45.7 $ 36.7 $ 38.0 $ 41.2 $ 42.1 $ 38.4 $ 33.0 $ 35.6 $ 40.0 $ 38.6 $ 39.0 $ 66.4 $ 66.4 $ 69.8 $ 70.9 $ 68.1 $ 68.6 $ 72.3 $ 76.5 $ 77.1 $ 84.7 Financial Plan The City’s Financial Plan includes surpluses in each of the three out-years totaling $13.3 million. The surplus is attributed to the City’s planned reduction in spending for supplies and services while maintaining full-time equivalent (“FTE”) positions at 2,674 budgeted FTE’s across the Financial Plan. The following chart summarizes the Financial Plan: 2020-21 2021-22 2022-23 2023-24 Adopted Budget Projection Projection Projection Revenues and Other Sources: Revenues Financial Plan $ 505,266,984 $ 502,921,021 $ 508,023,716 $ 515,223,441 Transfers In Total Revenues and Other Sources 14,283,560 14,664,084 15,063,634 15,515,543 $ 519,550,544 $ 517,585,105 $ 523,087,350 $ 530,738,984 Expenditures and Other Uses Departmental Charges $ 237,583,934 $ 225,132,095 $ 243,608,025 $ 246,895,938 General Charges 181,051,450 169,307,592 174,793,417 179,680,134 Interfund Transfers Out 100,915,160 123,085,160 97,816,536 97,789,942 TOTAL Expenditures and Other Uses $ 519,550,544 $ 517,524,847 $ 516,217,978 $ 524,366,014 Surplus / (Deficit) $ $ 60,258 $ 6,869,372 $ 6,372,970 Four-Year Increase/(Decrease) $ 9,956,457 % 2.0% 1,231,983 8.6% $ 11,188,440 2.2% $ 9,312,004 (1,371,316) (3,125,218) $ 4,815,470 3.9% -0.8% -3.1% 0.9% Expenditures over the 2021-2024 Financial Plan are budgeted to increase from $519.6 million to $524.4 million, an increase of $4.8 million or 0.9 percent. Departmental Costs are budgeted to increase $9.3 million, or 3.9 percent, General Charges are budgeted to decrease $1.4 million, or 0.8 percent and Transfers Out are budgeted to decrease $3.1 million, or 3.1 percent. Negotiated salary increases for the unions under contract including Local 282 and Local 650 (white collar) are included in the respective departments. Resources for negotiating with the unions out of contract are carried in the salary adjustment line under General Charges and total approximately $15.1 million over the Financial Plan. It is noted that the City is scheduled to repay the $25.0 million deficit note principal and corresponding interest of $0.5 million in fiscal year 2021-22, the second out-year of the Financial Plan, and has budgeted for the repayment by reducing expenditure projections in other areas. It is unclear what impact, if any, such reductions will result on the provision of services. Significant budget changes include a reduction in Department Charges services and supplies of $6.9 million and $2.5 million, respectively, and fringe benefits of $6.5 million; it is unclear how such expenditures will be reduced. Such amounts are restored in the subsequent year’s projections. Fringe personal services for payments to those on injured-on-duty status have been reduced in year 2021-22 by $2.4 million and is not restored in subsequent years. 19 The following chart summarizes departmental costs, general charges and transfers out over the 2021-2024 Financial Plan. As discussed above, there are substantial variances in fiscal year 2021-2022 as compared to the other three years of the Financial Plan. Departmental expenditures are reduced by $12.5 million, or 5.3 percent between year one and year two of the Financial Plan, and then are increased by $18.5 million, or 7.8 percent, to $243.6 million in year three, and then increased by an additional $3.3 million, or 1.4 percent in year four of the Financial Plan. General charges are handled in a similar fashion, decreasing by $11.8 million, or 6.5 percent in year two to $169.3 million, and then increasing by $5.5 million, or 3.2 percent, to $174.8 million in year 3, and increasing $4.9 million, or 2.8 percent to $179.9 million in year four. Departments Common Council City Clerk Mayor & Executive Audit & Control Law Assessment MIS Administration & Finance Parking Police Fire Human Resources Public Works Community Services Permits & Inspections Total Departmental 2019-20 Adopted Budget $ 2,536,152 2,895,526 5,492,327 3,628,905 3,263,310 2,719,166 5,617,457 10,037,899 3,198,691 89,621,930 58,475,038 5,561,043 31,021,593 4,773,764 5,798,348 234,641,149 2020-21 Adopted Budget $ 2,813,325 2,837,427 5,712,334 3,871,988 3,095,392 2,479,232 5,839,137 12,462,042 3,402,455 86,053,364 63,079,032 5,119,010 30,653,472 4,373,384 5,792,340 237,583,934 General Charges Grants In Aid Utilities Services Other Fringe Personal Services Fringe Benefits Debt Service Total General Charges Interfund Transfers Out 1,110,000 17,142,800 1,391,500 2,650,000 6,200,000 144,979,419 390,000 173,863,719 100,177,969 Total Budget 508,682,837 2021-22 2022-23 Projection 2023-24 $ 2,765,141 2,275,932 5,244,301 3,944,216 2,942,225 2,373,882 4,256,003 9,844,282 3,267,546 84,406,090 62,579,611 4,972,435 28,237,877 2,413,011 5,609,543 225,132,095 $ 2,812,836 2,884,898 5,794,879 4,017,868 3,141,291 2,534,263 5,975,562 12,688,101 3,473,332 87,231,787 65,813,652 5,228,651 31,617,139 4,496,308 5,897,458 243,608,025 $ 2,812,836 2,886,070 5,821,060 4,021,310 3,164,595 2,557,327 6,050,427 12,799,772 3,509,816 87,988,817 67,327,090 5,284,673 32,162,054 4,559,248 5,950,843 246,895,938 280,000 16,644,947 1,376,500 2,703,000 6,000,000 153,864,003 183,000 181,051,450 100,915,160 280,000 15,657,968 1,376,500 2,428,000 3,620,000 145,862,124 83,000 169,307,592 123,085,160 280,000 15,671,120 1,376,500 2,428,000 3,692,400 151,262,397 83,000 174,793,417 97,816,536 280,000 15,684,403 1,376,500 2,428,000 3,766,248 156,061,984 83,000 179,680,135 97,789,942 (960,544) (275,000) (2,233,752) 2,197,981 (100,000) (1,371,315) (3,125,218) 0.0% -5.8% 0.0% -10.2% -37.2% 1.4% -54.6% -0.8% -3.1% 519,550,544 517,524,847 516,217,978 524,366,015 4,815,471 0.9% Increase/(Decrease) Four-Year $ % (489) 0.0% 48,643 1.7% 108,726 1.9% 149,322 3.9% 69,203 2.2% 78,095 3.1% 211,290 3.6% 337,730 2.7% 107,361 3.2% 1,935,453 2.2% 4,248,058 6.7% 165,663 3.2% 1,508,582 4.9% 185,864 4.2% 158,503 2.7% 9,312,004 3.9% Departmental costs increase from $237.6 million to $246.9 million, an increase of $9.3 million, or 3.9 percent over the Financial Plan. The most significant increases include an increase of $4.2 million (6.7 percent) for the fire department, $1.9 million (2.2 percent) for the police department, and $1.5 million (4.9 percent) for public works. The remaining 12 departments are increasing by $1.8 million, or 2.8 percent, over the Financial Plan. 20 General Charges are decreasing by $1.4 million, or 0.8 percent over the Financial Plan. Significant changes include and a decrease in budgeted injured-on-duty salary costs of $2.2 million, representing a 37.2 percent reduction, a reduction of utilities of $1.0 million, or 5.8 percent, and the other expense category is reduced by $0.3 million, or 10.2 percent. Fringe benefits are budgeted to increase $2.2 million, or 1.4 percent over the Financial Plan. Fringe benefits are budgeted to increase from $153.9 million in 2020-21 to $156.1 million in 2023-24, an increase of $2.2 million, or 1.4 percent. Retiree health insurance is budgeted at $45.7 million in 2020-21 and is increased 1.4 percent annually, for a total increase of $1.9 million, or 4.2 percent, to $47.6 million in 2023-24. Active employee health insurance is increased 3.0 percent annually over the Financial Plan, increasing from $39.0 million to $42.6 million over the Financial Plan, a total increase of $3.6 million or 9.2 percent. Total health insurance for both retirees and active employees is budgeted to increase $5.5 million over the Financial Plan. Included within fringe benefits are contributions to the New York State and Local Retirement System which are increasing between 1 to 2 percent over the Financial Plan, increasing from $10.3 million to $10.8 million, an increase of $0.5 million. Contributions to the police and fire retirement system are increasing 1.5 percent annually, increasing from $31.5 million to $32.2 million, a total increase of $0.7 million. The City uses a blended pension rate calculation based on the employees’ pension tier, and as more employees retire they are replaced by new employees who are in tier 6 compared to employees that are predominately in tiers 2, 3, and 4. Increased costs to the pension system attributed to the impact of the COVID-19 pandemic will most likely materialize in fiscal years 2022-23 and 2023-24, based on how the rates are calculated by the New York State Comptroller. Also included within fringe benefits is a salary adjustment line budgeted at $4.9 million in 2020-21 and decreasing to $3.4 million in 2023-24, representing a decrease of $1.5 million, or 30.6 percent, over the Financial Plan. The Administration included a new hiring freeze line budgeted at $6.0 million in the second out-year of the Financial Plan that is reduced to $4.5 million in years three and four. This reflects the Administration’s need to control expenditures in the outyears of the plan by not filling vacant positions and this budget mechanism reduces total fringe benefits by $6.0 million in FY 2022 and $4.5 million in FY 2023 and 2024. All other fringe benefits are static or have minimal increases budgeted over the Financial Plan. Transfers Out are budgeted to decrease $3.1 million from $100.9 million in 2020-21 to $97.8 million in 2023-24. The reduction of $3.1 million is attributed to the decrease for the transfer to the capital debt service fund, which is projected to decrease by $2.8 million from $29.4 million to $26.6 million, and the elimination of interest associated with the deficit note in the amount of $0.3 million. Both the transfer to the School District of $70.8 million and the transfer to the capital projects fund of $0.4 million are held flat across the Financial Plan. The reduction in appropriations in Department and General Charges between fiscal year 2021-22 and 2022-23 is reflective of the need to identify repayment sources for the $25.0 million deficit note due to be repaid in December 2021. 21 The following schedule summarizes budgeted and projected departmental costs by purpose to provide a different view of the changes to projected expenditures over the Financial Plan. Departmental Costs Personal Services Utilities Travel Supplies Services Capital Outlay Subtotal 2019-20 Adopted Budget $ 194,678,336 207,186 291,225 10,824,994 26,241,634 2,397,775 234,641,149 2020-21 2021-22 Adopted Budget $ $ 196,762,743 194,821,680 211,996 223,996 212,904 213,976 12,487,196 9,948,128 25,964,227 19,038,505 1,944,868 885,812 237,583,934 225,132,097 2022-23 Projection 2023-24 $ $ 202,114,718 204,994,921 226,426 228,886 215,069 216,184 12,855,850 13,065,730 26,240,998 26,430,050 1,954,968 1,960,170 243,608,028 246,895,941 Increase/(Decrease) Four-Year $ % 8,232,177 4.2% 16,890 8.0% 3,280 1.5% 578,534 4.6% 465,823 1.8% 15,302 0.8% 9,312,007 3.9% Personal services costs are increasing from $196.8 million to $205.0 million, or an increase of $8.2 million, or 4.2 percent. As previously noted, this increase is attributed to negotiated employee salary steps and compensation increases in addition to estimated compensation increases for future settlement of labor contracts. Additional resources for future labor costs associated with new labor contracts have been budgeted within General Charges as the salary adjustment line. Expenditures for supplies are increased by $0.6 million, or 4.6 percent, over the Financial Plan, increasing from $12.5 million to $13.1 million. Expenditures for services are projected to increase by $0.5 million, or 1.8 percent, over the Financial Plan. Services are outside contracts with private companies that provide the City with technical, engineering, and other services that the City does not have the capacity or expertise to provide. Departmental utilities, capital outlay and travel are each held relatively flat over the Financial Plan with minor changes reflected. Staffing Levels Budgeted positions are to be reduced by 8 full time equivalents (“FTEs”) compared to the prior budget; total positions are budgeted at 2,674 FTEs for 2020-21 compared to 2,682 FTEs for 2019-20. The Financial Plan maintains budgeted positions at 2,674 FTEs throughout the Financial Plan. Both the police and fire departments are maintained at the 2019-20 levels which are 798 sworn police personnel and 742 firefighters, with the remaining City workforce totaling 1,134 FTEs. 2019-20 2020-21 Adopted Projected 2021-22 Projected 2022-23 2023-24 Projected Projected Police (uniform) 798 798 798 798 798 Fire (uniform) 742 742 742 742 742 1,142 1,134 1,134 1,134 1,134 2,682 2,674 2,674 2,674 2,674 - (8) 0 0 0 Other Citywide Net Increase/(Decrease) 22 The following table shows budgeted staff changes within the various departments from the adopted 201920 budget to the adopted 2020-21 spending plan, there are no variances in the out-years of the staffing plan: Animal Control & Shelter Assessment & Taxation Audit & Control Budget & Urban Affairs City Clerk City Council Community Services Division of Buildings Engineering Fire (Non-Uniform) Fire (Uniform)** Forestry Human Resources Law Mayor & Executive MIS Parking Parks Parks Admin. Permits & Inspections Police (Non-Uniform) Police (Uniform)* Public Works (Gen Office) Purchase Recreation Sanitation & Streets Telecommunications Treasury & Collections Total 2019-20 Adopted 2020-21 Adopted Change 15 34 50 13 22 40 31 61 67 48 742 6 20 33 80 31 39 35 4 95 205 798 10 27 20 135 5 16 2,682 15 34 51 12 24 41 30 64 68 48 742 6 20 29 81 29 42 32 4 87 206 798 6 26 20 138 5 16 2,674 0 0 1 (1) 2 1 (1) 3 1 0 0 0 0 (4) 1 (2) 3 (3) 0 (8) 1 0 (4) (1) 0 3 0 0 (8) 2019-20 3rd Quarter Filled 13 31 40 9 18 40 26 53 61 44 741 6 17 28 69 24 38 30 3 87 175 762 6 24 19 127 5 16 2,512 Variance to Adopted 2020-21 Budget (2) (3) (11) (3) (6) (1) (4) (11) (7) (4) (1) 0 (3) (1) (12) (5) (4) (2) (1) 0 (31) (36) 0 (2) (1) (11) 0 0 (162) * Uniformed Police positions are budgeted at 798 and are held flat compared to the 2019-20 budget; as of March 31, 2020, the City had filled 762 positions which is an increase of 4 FTE’s compared to the third quarter count of 758 FTE’s at March 31, 2019. The City expects this number to decline further through the remainder of the current year due to retirements. The City has included an attrition rate of 60 sworn police officers due to retirement next fiscal year. There are currently 25 sworn police officers that are at least 55 years old and have 30 years of service and are eligible to retire, representing 3.3 percent of the current force. Taken together, it is therefore improbable the City will staff 798 uniformed Police 23 positions in 2020-21 with a more realistic expectation of 750 to 775 uniformed police officers on the force by the end of FY 2020-21. ** Uniformed Fire positions were budgeted at 742 in the 2019-20 fiscal year and are budgeted to remain flat in 2020-21. The addition of new hires in the current year offset the number of retirements, resulting in an increase in the size of the force to 741 at March 31, 2020, as compared to 719 at March 31, 2019, representing an increase of 22 FTE’s. The City is estimating fifteen retirements during the 2020-21 fiscal year and does not anticipates hiring any new firefighter recruits during the fiscal year. The City expanded the number of budgeted positions in the 2018-19 budget to accommodate the hiring of larger recruit classes to offset retirements; the City uses the increased count to assist in hiring larger recruit classes but does not intend to maintain permanent positions at that level. It is most likely the City will have approximately 690 to 710 uniformed firefighters depending on the final number of retirements and recruits. There are currently 33 firefighters that are at least 55 years old and have at least 30 years of service and are currently eligible to retire, which is approximately 4.5 percent of the current workforce. On a year-to-year basis, the total number of budgeted positions decreased by eight FTEs, or 0.3 percent over last year. There are moderate changes across most departments, including an increase of three (3) FTE’s in sanitation and streets, parking and division of buildings. Two additional positions were added to the City Clerk’s office and one position in the departments of audit and control, city council, engineering, mayor and executive department, and police department civilians. Departments with decreases in FTE’s include eight (8) positions in permits and inspections, four (4) positions in both the law department and public works general office, three (3) positions in parks, two (2) positions in management and information systems, and one position in the departments of budget and urban affairs, community services, and the division of purchase. There are no staffing changes in the remaining three departments. All eliminated positions are currently vacant. The following schedule provides a summary of the composition of the fire and police forces as of June 30, 2020, summarized by membership in pension tier and including the average age, average years of service, median age and median years of service by tier. In previous years Tier 2 would normally be the largest tier on a membership basis, however this year the largest tier is Tier 6. There are 660 FTE’s in Tier 2 compared to 730 FTE’s last year, which is a decrease of 70 employees. As a reference, 2015-16 had 1,005 FTEs in Tier 2, which is a decrease of 345 Tier 2 FTEs over the last four years. Tier 6 has a combined 723 FTEs compared to 615 FTEs a year ago, an increase of 108 employees. On average, most protective service employees retire after 25 to 30 years of service. Fire # FTE's Tier 1 Tier 2 335 Tier 3 2 Tier 4 Tier 5 53 Tier 6 348 Total Count 738 Average Median Average Median Tier as Years of Years of Age Age Percent Service Service 21.7 50.4 51.2 22.8 45.4% 10.8 37.4 37.4 10.8 0.3% 8.9 39.2 37.5 9.2 7.2% 3.6 33.5 32.9 3.8 47.2% 13.0 42.3 42.4 13.4 100.0% 24 Police # FTE's Tier 1 Tier 2 325 Tier 3 0 Tier 4 Tier 5 48 Tier 6 375 Total Count 748 Average Median Average Median Tier as Years of Years of Age Age Percent Service Service 19.3 47.4 48.6 19.9 43.4% 0.0% 7.9 35.8 35.3 8.5 6.4% 3.4 31.1 30.5 3.4 50.1% 13.4 41.2 41.7 13.4 100.0% Fund Balance The City’s adopted 2020-21 budget does not rely on unassigned fund balance. Based on the final 2019 results of operations, total unassigned fund balance of $0 was reported at June 30, 2019, assigned fund balance was $13.0 million and the Rainy Day Fund of $38.5 million remained intact, for a total $51.5 million of unrestricted fund balance. The City borrowed the maximum amount allowed for deficit notes in June 2020 of $25.0 million to address the projected 2019-20 deficit; however, a deficit could further result if the June State AIM payment as withheld by the State of $19.7 million is not restored timely. The City is no longer able to budget unassigned fund balance to fund budget gaps. Fund balance can only be replenished with surpluses. The City’s Financial Plan includes a combined total of $12.7 million in surplus over the three out-years; however, those same out-years have included a combined amount of $15.0 million in freeze accounts. In the event a deficit is reported in 2019-20 in excess of the $25.0 million that was borrowed for, assigned fund balance would first be reduced and after that was depleted, the Rainy Day Fund would be used. It is imperative the City remain structurally balanced as further draws on fund balance would significantly weaken the City’s financial position, and at this time there is no budget mechanism for the City to replenish fund balance. Enterprise Funds In addition to the general fund revenues and expenditures that were discussed, it is important to include the City’s Enterprise Funds when discussing the health of the City’s finances. An Enterprise Fund by definition is a fund that provides services to the public for which fees are collected and are intended to fund a significant portion of operations. The City has three major enterprise funds which include the Parking Fund, Solid Waste and Recycling Fund and the Water Fund. The Solid Waste and Recycling Fund has historically incurred an annual operating deficit that the City’s General Fund was ultimately liable for. Up until the 2018-19 budget, the City budgeted a transfer of $3.2 million to the Solid Waste and Recycling Fund to assist in the support of its operations. The cumulative deficit in the fund is $61.7 million, which is a year-to-year reduction of $5.3 million compared to the previous deficit amount of $67.0 million. Of this amount, $18.4 million represents a long-term loan from the General Fund and is reported as nonspendable fund balance within the General Fund. Effective July 1, 2019, the Administration increased fees on all trash totes to generate additional revenue for the fund to be self-sustaining. In the event the fee increase is insufficient, and deficits continue to be reported, the General Fund will be required to fund such deficits either through a transfer or a cash loan. The intent is for any surplus generated by the Solid Waste and Recycling Fund be used towards repaying the General Fund. The Parking Fund is in good fiscal standing and continues to subsidize General Fund operations. The budgeted transfer for 2020-21 is $6.0 million which is an increase of $0.7 million compared to 2019-20 amount of $5.3 million. The Water Fund is budgeted to increase its transfer from $7.2 million to $7.6 million, an increase of $0.4 million. To provide a more accurate review of the Enterprise Funds, it is recommended that the City include an FTE schedule similar to the one that is prepared for the General Fund. The City has included additional detail for the current year in regards to assumptions such as staff count including titles and steps and has discretely broken out payroll and fringe benefits, but does not provide the details for subsequent projected years. 25 Review and Analysis of 2020-21 Adopted Budget and 2021-2024 Financial Plan: Conclusions and Summary The Financial Plan is not operationally balanced as it relies on speculative revenue to support annual operating expenditures. The Financial Plan further is not compliant with the BFSA Act as we are unable to conclude that the projections of expenditures in year 2021-22 are reasonable and appropriate. Specifically, the following are noted: • Due to the widespread economic impact resulting from the COVID-19 pandemic, the City reduced State AIM estimated receipts for 2020-21 by 20%, or $32.3 million, and sales tax receipts by 20%, or $18.4. Partially in response to these reductions, the City budgeted anticipated federal stimulus funding in the amount of $65.1 million, which has not yet been approved by the Federal government. The House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act on May 15, 2020. Within the HEROES Act is $1.0 trillion of funding to state and local governments facing revenue shortfalls due to the impact from the pandemic. There has been no action yet taken by the Senate as to this matter. The inclusion of this revenue is considered speculative. • The Financial Plan includes $68.1 million of Tribal State Compact revenue, or casino revenue. The Seneca Gaming Commission halted payments to the State after its December 2016 payment. The dispute went before a three-member arbitration panel in December 2018, with a decision in favor of the State. The Seneca Gaming Corporation appealed the decision to the U.S. Department of Interior requesting the decision be vacated; the Department of Interior declined to review the case. In June 2019, the Seneca Gaming Corporation requested the U.S. District Court of Western New York to vacate the arbitration panel’s decision and in November 2019, the U.S. District Court of Western New York upheld the decision that the Seneca Gaming Corporation wrongly withheld $255 million in casino payments to the State. It is unknown when the Seneca Gaming Corporation will make payment. The State advanced $7.5 million to the City for 2018-19, representing a portion of the then-estimated amount due of $17.0 million. The total amount the City has estimated is due from casino payments including the amount not received in 2019-20 is $24.0 million. It is unknown when such payments will recommence and as such these revenues are considered speculative. • The City projected annual increases to State AIM with a return to pre-pandemic levels in year 2023-24; the cumulative amount of estimated increases in State AIM are $62.3 million. The State has included in its Enacted 2020-21 Budget Financial Plan a recurring reduction of $8.2 billion in aid to localities; the extent of impact to the City of Buffalo is unknown. The City’s increase in State AIM is contradictory to the State’s projections and is therefore deemed speculative. • The City reduced estimates for sales tax in 2020-21 by $18.4 million and resumes sales tax at prepandemic levels beginning in 2021-22. This assumption is inconsistent with economic forecasts by recognized economists. Assuming a 5% to 10% annual recovery, sales tax is estimated to be over-projected over the Financial Plan by $19.3 to $40.7 million, with the average estimated at $30.0 million. 26 • In total, speculative revenue over the Financial Plan is estimated at $225.4 million consisting of $76.1 million in fiscal year 2020-21, $59.4 million in 2021-22, $41.5 million in 2022-23 and $48.4 million in 2023-24. • Various expenditure projections in 2021-22 have been reduced in response to the maturity and repayment of a $25.0 million deficit note issued in June 2020. It is unclear what impact, if any, such reductions to operations will have on the provision of services. Additionally, insufficient information was submitted to determine if such reductions are reasonable and if expenditures overall are reasonably projected. Other areas of significance as noted within the report are summarized below: • The Financial Plan will require close monitoring, including difficult to estimate revenues, as unfavorable budgetary results will result in a decrease to unrestricted fund balance. Unrestricted fund balance for the most recent closed fiscal year ended June 30, 2019 was $51.5 million consisting of $38.5 million in the Rainy Day Fund and $13.0 million of assigned fund balance. The Government Finance Officers Association recommends no less than two months of regular operating expenditures; two months of budgeted 2020-21 expenditures is equivalent to $86.6 million and if transfers are excluded two months is equivalent to $69.8 million. Therefore, the City is currently under recommended levels and should consider a fund balance replenishment program. We recommend school zone camera violations be closely monitored and revisions made to the Financial Plan as necessary. • The Financial Plan includes in year 2022-23 the sale of a parking ramp in the amount of $13.9 million which is equivalent to 2.6% of projected revenue for that year. Reliance on non-operating revenues for normal, recurring operating expenditures could be problematic as a change in estimate or timing would result in a budget gap that would require gap closing measure to address. • The City may be underestimating fire department overtime as the 2020-21 Adopted Budget is less than what is projected for 2019-20 by $2.9 to $3.2 million; overtime is not significantly changed over the Financial Plan. The inability to significantly alter the incurrence of overtime expenditures would have a significant impact on the City’s financial results. We recommend the City closely monitor this area and modify the Financial Plan as necessary. • Various unanticipated revenue shortfalls and expenditures increases could occur due to the unknown economic impact related to the COVID-19 pandemic. We recommend the City monitor financial operations closely and develop a revised plan as necessary with sufficient time to be able to react without incurring widespread reductions in services. • There is a continued reliance from transfers in from the Parking Fund to fund the general operations of the City. The transfer is $6.0 million in 2020-21 and is increased to $6.2 million in 2023-24. This amount is equal to $24.2 million over the Financial Plan. • The City is maintaining its contribution to the District of $70.8 million annually over the life of the Financial Plan. The District continues to request additional funding. 27 • The City no longer subsidizes annually the operations of the Solid Waste and Recycling Fund. Based on the City’s current year projections, the rates charged for services will be adequate to fund operations of this enterprise fund. If there are insufficient resources to support operations, the General Fund is responsible for any cash deficit. The amount due from the Solid Waste and Recycling Fund to the General Fund was $18.4 million at June 30, 2019, which is reported as a restriction to fund balance in the General Fund. No formal plan has been developed to address the outstanding receivable in the General Fund. The City has indicated that cash surpluses, if any, will be applied against the outstanding receivable. Such payments will reduce General Fund restricted fund balance and increase unrestricted fund balance. 28 June 30, 2020 Mr. R. Nils Olsen, Jr. Chair Buffalo Fiscal Stability Authority 617 Main Street Suite 400 Buffalo, NY 14203 Dear Chairperson Olsen, The revised Four Year Plan is enclosed with modifications reflected due to the deficit note borrowing. For current Fiscal Year 2019-20, the City is borrowing $25 million in deficit notes to be used towards our anticipated deficit. This deficit is due to the combined impact of Covid-19 pandemic and social unrest throughout the nation and the City of Buffalo. The Four-Year Plan now reflects this future debt service and Council changes. BFSA’s recommendation to structure a budget without the expectation of federal aid or any revenue from the Seneca Nation is an improbable scenario, but one for which we have a contingency plan. I am confident that the State will find that the budget, which the Common Council approved, reflects a conservative projection of federal aid and a reasonable expectation of other revenue sources. My Administration is making the rational assumption that the federal government will not allow the recession we entered during February 2020 to continue. The amount projected, $65 million, is lower than the amounts that the City would receive under both the HEROES Act and the bipartisan SMART Fund. Leaders in both parties, as reported in various media outlets, are now contemplating a mid-summer state and local government relief bill to ensure the nascent economic recovery does not falter. For these reasons, the continued inclusion of federal disaster relief contained in the City’s budget is both reasonable and appropriate. However, my Administration continues to examine other ways to ensure the City’s fiscal position remains stable even if the federal aid does not come in a timely manner or in the amount we have anticipated. In previous correspondence, I outlined a number of contingency plans my Administration was ready to enact. I am still prepared to make those decisions, if and when, it becomes necessary. The chart below summarizes the City’s alternative spending model: Beginning Amt (balanced at zero) Sales Tax Adjustment (net) State Aid Adjustment (net) Federal Disaster Relief Additional Proceeds from Fernbach School Zone Cameras Revenue Reduction in Misc Expenses $25m Deficit Borrowing FY19-20 $52m 10 Yr Deficit Bonds FY 20-21 Reduction of Capital Outlay Eliminate Non-Essential Overtime Close One Firehouse Temporarily Reduction of Cultural Contributions Departmental Reductions Remaining (balanced at zero) Year One 2020-2021 - Year Two 2021-2022 (2,716,000) (10,000,000) Year Three Year Four 2022-2023 2023-2024 (2,770,167) (2,825,570) (20,000,000) (20,000,000) (65,082,569) (300,000) 52,000,000 1,000,000 4,000,000 2,300,000 2,000,000 4,082,569 - 2,800,000 689,000 (25.300,000) (867,926) 1,000,000 4,000,000 2,300,000 2,000,000 26,094,926 - 6,170,000 2,800,000 1,257,624 2,800,000 993,069 (6,292,926) 1,000,000 4,000,000 2,300,000 2,000,000 9,535,469 - (6,292,926) 1,000,000 4,000,000 2,300,000 2,000,000 16,025,427 - The City looks forward in working collaboratively with the Buffalo Fiscal Stability Authority requesting State legislation authorizing the issuance of deficit-fund bonds, if necessary, to mitigate any reduction of essential services in the upcoming year. While use of the Rainy Day fund was not contemplated in the spending plan approved by the Common Council, it remains an option that my Administration can and will utilize if necessary. As I have previously stated, the Adopted Budget is a recovery plan for Buffalo that provides rational estimates of revenues and expenses. BFSA requested an alternative spending model and we provided one that proposes a responsible amount of borrowing along with a reduction of expenses. Sincerely Byron W. Brown Mayor Page 2 of 2 Certification of Consistent Budget I, Byron W. Brown, Mayor of the City of Buffalo, so hereby certify that the budget submitted is consistent with the City of Buffalo?s Four Year Financial Plan and that the City of Buffalo operations within that budget are feasible as required by ?3857(2)(a) of the Public Authorities Law. . W.Brown Mayor June 24, 2020 City of Buffalo Summary of Revenues and Expenditures 320202021 2021?2022 2022?2023 Recommended Budget Projection Projection Projection ($519.55) ($517.61) ($523.12) ($530.05) $519.55 $517.52 $516.22 $524.37 $0.00 $0.08 - $6.90 $5.68 . City of Buffalo Summary of Revenues and Resources 20202021 i i 52502152022 . :2923:2024: i i 3 1' Recommended Budget Projection Projection Projection REVENUE Taxes (157,190,897) (162,789,548) (165,700,951) (168,670,582) Non Property Taxes (11,630,000) (1 1,630,000) (11,630,000) (11,630,000) Licenses and Permits (5,434,464) (5,488,809) (5,543,697) (5,571,415) Intergovernmental (285,278,968) (274,036,014) (261 ,890,218) (276,093,256) Service Charges (15,243,848) (15,501,339) (15,755,607) (15,966,948) Fines (15,481,925) (18,383,675) (18,486,333) (18,589,906) Interest (1,000,000) (1,000,000) (1,000,000) (1,000,000) Miscellaneous (14,006,882) W16) ,669) TOTAL 2 2 I 2 1-1-1 3-: I ms?, RESOURCES Operating Transfers In Other Financing Sources - .. - - . City of Buffalo Summary of Expenditures and Appropriations - 3 Si} i if 1 ET 320219-2022} "1 '1 :r - - 2022-2023 32023-2024 Recommended Budget Projection Projection Projection DEPARTMENTS Common CounciT 2,813,325 2,765,141 2,812,836 2,812,836 City Clerk 2,837,427 2,275,932 2,884,898 2,886,070 Mayor Executive 5,712,334 5,244,301 5,794,879 5,821,060 Audit Control 3,871,988 3,944,216 4,017,868 4,021,310 Law 3,095,392 2,942,225 3,141,291 3,164,595 Assessment 2,479,232 2,373,882 2,534,263 2,557,327 MIS 5,839,137 4,256,003 5,975,562 6,050,427 Administration Finance 12,462,042 9, 844,282 12,688,101 12,799, 772 Parking 3,402,455 3,267,549 3,473,332 3,509,816 Police 86,053,364 84,406,090 87,231,787 87,988,817 Fire 63,079,032 62,579,611 65,813,652 67,327,090 Human Resources 5,119,011 4,972,435 5,228,651 5,284,673 Public Works 30,653,472 28,237,877 31,617,139 32,162,054 Community Services 4,373,384 2,413,011 4,496,308 4,559,248 Permits inspections 5,792,340 5,609,543 5,897,456 5,950,842 TOTAL 588:8 GENERAL CHARGES Grants In Aid 280,000 280,000 280,000 280,000 MiscEUtilities 16,644,947 15,657,968 15,671 120 15,684,403 Misc. Services 1,376,500 1,376,500 1,376,500 1,376,500 Misc. Capital Outlay - - - - Misc. Other 2,703,000 2,428,000 2,428,000 2,428,000 Fringe Personal Services 6,000,000 3,620,000 3,692,400 3,766,248 Fringe Bene?ts 153,864,003 145,862,124 151,262,397 156,061,983 Debt Service 183, 000 83,000 83, 000 83, 000 Interfund Transfers Out 10:0 915,160 123,085,160 87, 816, 536 97, 789, 942 . City of Buffalo O1 --COMMON COUNCIL Personal Services Utilities Travel Supplies Services Ca pita! Outlay 02 - CITY CLERK Personal Services Utilities Travel Supplies Services Capital Outlay fgijei? Third Quarter 2019-2020 Departmental Expenditures - 233'320212-20222 220222420233 Recommended . . . . . Budget Projection Prolectlon Prolectlon 2,710,181 2,756,941 2,804,636 2,804,636 8,200 8,200 8,200 8,200 94,944 - - 1,315,525 7,700 - 5,475 72,340' 1,435,334 . . 3&3, x??u?uvo 03 MAYOR EXECUTIVE Personal Services Utilities Travel Supplies Services Capital Outlay 4,905,227 1,320 16,230 20,116 769,441 04 - AUDIT 8: CONTROL 1,337,889 7,854 6,475 72,417 851,297 4,874,475 1 ,346 16,230 20.243 332,007 3,603,899 29.072 23.911 286,833 1,360,697 8,011 6,475 72,495 1,437,220 3:233? 4,986,578 1,373 16,230 20,371 770,326 3,674,152 29,072 24,099 290,045 1,360,697 8,171 6,475 72,575 1,438,152 5,012,153 1,401 16,230 20,501 770,776 3,674,152 29,072 24,289 293,296 Personal Services 3,535,024 Utilities Travel 29,072 Supplies 23,725 Services 283,667 Capital Outlay 05 - LAW Personal Services 2,283,929 Utilities - Travel 4,000 Supplies 27,650 Services 779,813 Capital Outlay 3 TOTALS - - 3605,? Four year ptan 2021?2024 2,305,776 4,000 27,926 604,523 2,327,841 4,000 28,205 781,246 2,350,127 4,000 City of Buffalo Third Quarter 2019-2020 Departmental Expenditures 3 i 2020421121.} 35220219202217 '3 E3 ?20234-20249" 5 Recommended Projection Projection Projection Budget 06 - ASSESSMENT Personal Services 2,139,582 2,158,586 2,177,781 2,197,167 Utilities - 9.600 9,600 9.600 Travel 4,500 4,500 4,500 4,500 Supplies 800 802 804 806 Services 334,350 200,394 341,578 345,254 939.113.109.113! . 3 1 33,, 08 - MIS Personal Services Utilities Travel Supplies Services Capital Outlay TOTAL 15I 17 - ADMIN 8: FINANCE Personal Services Utilities Travel Supplies Services Capital Outlay 1,303,530 33,593 31,443 3,550,571 3,450,932 34,494 3,213,059 749,527 i 2 i i} .5 ?755.] 3 5 14 - PARKING Personal Services Utilities Travel Supplies Services Capital Outlay 20 - POLICE Personal Services Utilities Travel Supplies Services Capital Outlay .TOTAL. I. ..II.I Four year plan 2021-2024 2,442,269 80,650 874,536 1,791,993 64,665 83,072 2,316,275 3,393,896 34,494 5,655,670 756,242 2,311,015 80,650 875,884 1,861,126 65,758 84,733 3,723,947 240 000 3,566,981 34,494 8,319,622 763,024 3 980 2,510,436 80,650 877,246 1,895,942 66,873 86,428 3,761,187 240 000,3 3,617,455 34,494 8,373,967 769,876 2,545,546 80,650 878,621 31,503,11300 133,973 12,000 1,097,045 2,421,229 .. 30,525,95300 135,313 12,000 1,101,979 1,397,337 33,000 133mg: 33333333333 82,627,145.09 187,674 12,000 1,102,073 2,469,896 88.3.3? 33,357,50345 139,551 12,000 1 ,102, 133 2,494,595 City of Buffalo Third Quarter 2019-2020 Departmental Expenditures 3 2020-20213 2023-20243" Recommended . . . . - - Budget Projection Prolectlon 21 - FIRE - Personal Services 61 ,065,993 60,641,054 63,777,897 65,279,778 Utilities 16,000 16,320 16,646 16,979 Travel 11,460 11,460 11,460 11,460 Supplies 962,443 876,668 962,443 962,443 Services 1,023,136 1,034,109 1,045,206 1,056,430 Capital Outlay 25 - HUMAN RESOURCES Personal Services Travel Supplies Services Capital Outlay - 33 30-52 - PUBLIC WORKS Personal Services Utilities Travel Supplies Services capital Outlay 55 - COMMUNITY SERV. Personal Services Utilities Travel Supplies Services 1,344,179 600 6,515 3,767,717 21,068,524 3,000 1,884,309 7,120,332 1,828,704 80 11,500 2,533,100 .3 8 65 - PERMITS 8: INSPECTIONS Personal Services Travel Supplies Services Capital Outlay 3'33 Four year plan 2021-2024 5,352,979 22,200 5,600 126,480 1,368,862 600 6,645 3,596,328 20,385,243 3.060 1,980,917 5,620,324 *1 5&3? 9:19:19 39; Kim 1,863,359 80 1 1,628 537,944 ?mwum?z' 1' 5,402,733 22,200 5,600 129,010 ?18,312? 1.394.039 600 6,778 3,827,234 21,693,718 3,121 2,136,219 7,196,673 587,407 1,898,706 . 80 11,757 2,585,766 5,452,985 22,200 5,600 131,590 1,419,719 600 6,914 3,857,440 22,041,547 3,184 2,289,016 7,235,699 1,934,761 80 11,887 2,612,520 5,503,739 22,200 5,600 134,222 City of Buffalo Third Quarter 2019-2020 Departmental Expenditures 2020402121 :32021'?2022 - E-E 2022-2023 - 3' - 2023-20242 - Projection Projection Projection 71 - GRANTS IN AID GIA Youth Programs - - GIA Home Community Se - - - GIA Council of Arts - GIA Cultural 8: Anti-Violence 280,000 280,000 280,000 280,000 Freeze Funds - - TOTAL 2 - 72 - MISCELLANEOUS UTILITIES Natural Gas 1,200,000 1,200,000 1,200,000 1,200,000 Electric 14,000,000 13,000,000 13,000,000 13,000,000 Telephone 1,302,147 1,315,168 1,328,320 1,341,603 Utility Management Fees 142 800 142 800 TOTAL 4 SERVICES Zoo - 136,000 136,000 136,000 - 136.000 Buffalo Place - - - - Kleinhans 35,000 35,000 35,000 35,000 Historical Society 5,000 5,000 5,000 5,000 Dr Lord's Library 500 500 - 500 500 Refuse Disposal TOTAL 1299 090 1:808 ,1289 008, A sxi?m?ifsxm? m: 2 3288?} CAPITAL OUTLAY Capital Project Reserve - - - Planning for Capital Projects - . - - $333: 81" Four year pIan 2021-2024 City of Buffalo Third Quarter 2019-2020 Departmental Expenditures 32021-2022 I 3; [2022-2023 2023-2024. i Recgtg?zrtided Projection Projection Projection OTHER . Tax Fee Adjustments 75,000 75,000 75,000 75,000 Certiorari Adjustments 500,000 225,000 225,000 225,000 Res Motor Vehicle Ins 78,000 78,000 78,000 78,000 Judgement Claims Curren 50,000 50,000 50,000 50,000 Judgement Claims Prior 2,000,000 2,000,000 2,000,000 2,000,000 Cash Refund Rev FEBZGFUDGS . TOTAL - 73 - FRINGE BENEFITS Annual Salary Duty Disability Salary. 6,000,000 3,620,000 3,692,400 3,766,248 Health Insurance Retired 45,697,546 45,371,403 46,172,545 47,557,721 Health Insurance Active 39,026,969 39,117,778 41,402,711 42,644,792 Group Life Insurance 204,048 204,048 204,048 204,048 Group Dental Insurance 1,836,000 1,836,000 1,854,360 1,872,904 In Lieu Of Health Insurance 325,000 325,000 325,000 325,000 Disability Insurance 55,008 56,108 57,230 58,375 Union Optical 150,000 150,000 150,000 150,000 Health Insurance Excise Ta) 14,000 14,000 14,000 14,000 Health Insurance Excise Ta) 11,900 11,900 11,900 11,900 Funeral Coverage 12,500 12,500 12,500 12,500 Fica Medicare - 14,250,000 14,535,000 14,725,700 15,120,214 NYS Employee Retirement 10,325,000 10,428,250 10,536,815 11,247,551 NYS Police&Fire Retirement 31,508,000 30,840,229 31,268,768 - 32,247,907 City Police Pension 22,560 22,560 22,560 22,560 City Fire Pension . - - - NYS Unemployment Insuran 215,250 215,250 215,250 215,250 Workers Compensation 3,280,000 3,345,600 3,412,512 3,480,762 Self Insure Administration 85,000 85,000 85,000 85,000 Self Insure Claims 910,000 910,000 910,000 910,000 Unused Sick Leave 1,000,000 1,000,000 - 1,000,000 1,000,000 Hiring Freeze - (6,000,000) (4,500,000) (4,500,000) Retroactive Salary Adjustme 4,935,222 3,381,498 3,381,498 3,381,498 Four year pfan 2021-2024 City of Buffalo Third Quarter 2019-2020 Departmental Expenditures 320220-2021 3-1? 33 2022-2023 '3 2023402433 1 Recg?geertmed Projection Projection Projection 74 - DEBT SERVCE Interest On Rans 100,000 - Fiscal Agent Expense Bond Sales Expense Arbitrage Rebate Reqwreme 75 - INTERFUND TRANSFERS 400.000 26,593,778 70,822,758 400,000 23, 537 134 70, 322 753,. 202,114,718 226,425.93 215,069 12,855,850 26,240,998 1,954,968 204,994,921 228,885.70 216,184 13,065,730 26,430,050 1,960,170 To Deficit Note - Interest 330,000 25,000,000 To Capital ProjectsFund 400,000 400,000 To Capital Debt Service Fun 29,362,402 26,862,402 To Board Of Education 70,822,758 70,822,758 TOTAL Personal SerVIces 196,762,743 194,821,680 Utilities 211,996 223,996.16 Travel 212,904 - 213,976 Supplies 12,487,196 9,948,128 Services 25,964,227 19,038,505 Capital Outlay 1,944,868 885,812 Unclassified - - .Ej._33 3'3 Grant In 280,000 280,000 Utilities 16,644,947 15,657,968 Services 1,376,500 1,376,500 Other 2,703,000 2,428,000 Personal Service 6,000,000 3,620,000 Salary Adjustment 4,935,222 3,381,498 Fringe 148,928,781 142,480,626 . Debt Service 183,000 83, 000 Interfund Transfers Qut 100, 915 160 123 08599160 TOTAL 230,000 15,371,120 1,373,500 2,423,000 3,392,400 3,331,493 147,330,399 33, 000 97, 313, 533 230,000 15,334,403 1,373,500 2,423,000 3,733,243 3,331 ,493 152,330,435 33,000 97 739,942 - ?new? $934393,? Four year plan 2021-2024 City of Buffalo 2020-21 through 2023-24 Revenue Detail MU N13 2020-32021 1 2021 -2022 ?2022-2023 2023-2024 - Org Object Object Description 1499;213:2999 Projection Projection Projection 01 - TAXES 10700001 311100 Real Property Tax Levy (139.971.280) (145,570,131) (148,481,534) (151.451.165) 10700001 312000 Occupancy Tax (2.000) (1.800) (1 .000) (1.800) 10790000? 319110 Int Pen on Taxes - Current (1.000.000) (1,000,000) (1,000,000) (1,000,000) 10700001 319111 Int 81 Pen on Taxes - Delinquent (1 .200,000) (1,200,000) (1,200,000) (1,200,000) 10700001 335101 Mortgage Tax (3,900,000) (3,900,000) (3.900000) (3.900.000) 10100001 335102 STAR PROGRAM (7 .893,720) (7,803,720) (7 ?93,720) (7.893 .720) ?$907000? 339001 I L.O.T. (3 223 997) (3 223.89?) (3223099951) 4 1 02 1 0002 10700002 10700002 1 0700002 999999 10651005 10651005 10651005 10651005 10651005 10214205 10654205 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10651005 10310005 10651005 10651005 10310005 10651005 10651005 10651005 10651005 10310005 10213005 316300 316100 316200 318200 321201 321202 321301 321302 321303 321304 321304 321601 321002 321603 321604 321605 321607 321608 321609 321610 321611 321612 321613 321514 321617 321618 321619 321701 321702 321703 321600 322101 322102 322103 322104 322104 322106 32210? 322108 322100 322110 Four Year Plan 2021 ?024 02 - NON-PROPERTY TAXES Foreign Fire Insurance Tax Class 11 Utility Tax Class I Utility Tax Cable Franchise Tax (730.000) (9.000.000) (2 900 000) 05 - LICENSES 8: PERMITS Lodging House License Market License Group Fees Certi?cates of Inspection Flammable Liquid Llcense Smoke Abatement License EMS Lic 3. Franchise Fee EMS Lic 9 Franchise Fee Plumbers License Fee Electricians License Fee Heating Contractor License Home Improvement License Consumer Electronics License Fee Stationary Engr License Parking Lot License Fees Bakers 8. Confectioners License Restaurant License Fees Restaurant Dance License Vending Machine Coin Oper Bowling Ailey License Second Hand Dealers License Livery Car License Fire Prevention License Elevator Inspilnst Amusement License Fees Bingo License Group Games of Chance License Business License Other Street Permits Sign License Group Fees ElevatoriEscalator Permits Encroachment Permit Encroachment Permit Building Permits Electrical Permits Plumbing Permits Garage Sale Permit Tent Permit (19.900) (95.000) (27.000) (4,500) (145,000) (492.914) (90.000) (5,000) (45,000) (950,000) (200) (71.900) (90.000) (3.900) (135,000) (11,000) (19,000) (2,500) (70.000) (200) (100.000) (1.000) (99,000) (29.000) (9.000) (235.750) (150.000) (14.000) (99,000) (202,000) (1.700.000) (310.000) (250.000) (9,000) (790.000) (6.000.000) (19,995) (95.950) (27.270) (4.545) (149,450) (497,540) (90,900) (5,050) (45.450) (959,500) (202) (72.013) (50,500) (3,535) (139.390) (11.110) (19.190) (2.525) (70,700) (202) (101.000) (1.010) (99.990) (29.290) (9.090) (239.109) (151.500) (14.140) (99.990) (204,020) (1,717,000) (313.100) (252.500) (8.080) (730.000) (9.000.000) (2 900 000) (19.992) (99.709) (27,549) (4,590) (147.915) (502.519) (91.209) (5.101) (45.905) (997,095) (204) (72,733) (51.005) (3.570) (137,714) (11,221) (19,392) (2,550) (71.407) (204) (102,010) (1.020) (99,997) (29,593) (9.191) (240,499) (153,015) (14.291) (90,799) (209,090) (1.794.170) (319,231) (255.025) (9.191) (730,000) (9,000,000) (19,991) (97.142) (27.990) (4.913) (149,954) (505,029) (91.512) (5.129) (49.134) (971.420) (205) (73,097) (51.290) (9.599) (139.402)- (11,277) (19,479) (2.593) (71.794) (205) (102,520) (1,025) (99.714) (29,709) (9,227) (241 ,991) (153,790) (14.353) (91.243) (207,091) (1,742,941) (317,912) (259,300) (9,202) City of Buffalo 2020-21 through 2023-24 Revenue Detail MUNES 2020-2021 2021-2022 12022-2023 . 2023-20241 Org Object Object Description Recg?geelgded Projection Projection Projection 10213005 322111 Propane Permit (3,000) (8,080) (8,161) (8,202) 10310005 322201 Vehicle Limit Permits (35.000) (35,350) (35,704) (35,032) 10551005 322300 Taxicab Drivers License (8,000) (8.080) (8.161) (8.202) 10051005 322301 Taxicab BUS License Fees (5.000) (5,050) (5.101) (5.126) 10020005 322500 Marriage Licenses (17,000) (17,170) (17,342) (17,428) 10020003 322001 Dog Licenses (100,000) (101,000) (102,010) (102,520) 10020005 322602 Chicken License (400) (404) (408) (410) 10213005 351306 Piacard Fee 10205010 10700010 10700010 17093010 10140010 10554010 10550010 10251010 10700010 10700010 10205010 10700010 10034010 331 000 335006 335221 335222 335500 337001 337301 337306 338001 338101 338103 339002 330200 10 - INTERGOVERNMENTAL Miscellaneous Federal Revenue . Federal Revenue - Stimulus Special State Aid Tribal Compact Agreement Erie Canal Harbor Rental PaI1